Forex Today: Dollar starts the week with the wrong footing
|Here is what you need to know Monday, November 3rd:
- The dollar was the worst performer, falling against all of its major rivals on the back of a dismal ISM Manufacturing PMI down to 58.1 in November.
- Risk aversion took over the financial markets amid the back and forth in the trade war front. US President Trump triggered the dismal sentiment ahead of Wall Street’s opening, by announcing immediate tariffs of base metals’ imports coming from South America. Earlier in the day, China said it won’t allow the visit of the US military to Hong Kong and announced sanctions against several US non-government organizations for encouraging protesters. Also, Wilbur Ross claimed Trump could lift tariffs on China if a deal is not reached. Finally, White House advisor, Conway, announced phase one of China trade deal is being written up, but his words were too little too late.
- The Sterling was the worst performer, ending the day around 1.2930, unchanged from Friday’s close against the greenback, as polls suggest a hung Parliament.
- Wall Street collapsed, safe-haven yen appreciated, and gold also advanced, although at a slower pace. The bright metal retains a neutral stance.
- Crude oil prices held at the lower end of the last week’s range, as investors wait for fresh clues on OPEC+ next move.
- Cryptocurrencies consolidated weekend losses.
- AUD/USD trades at over one-week highs ahead of the RBA monetary policy announcement. The central bank is expected to maintain the status quo.
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