Forex Today: More stimulus coming from the ECB, dollar backed by fears and data
|Here is what you need to know on Friday, October 30:
The American currency appreciated against most major rivals, finding support in risk aversion and better-than-expected US macroeconomic figures. Initial Jobless Claims improved to 751K in the week ended October 23, while the preliminary estimate of Q3 GDP resulted at 3.7% QoQ. The annualized figure surged to 33.1% from -31.4%.
The upbeat numbers put a halt to stocks’ bleeding, with Wall Street closing in the green, although far from trimming early week losses.
The EUR/USD pair fell to a fresh monthly low of 1.1649, amid a dovish ECB. President Christine Lagarde hinted at December action, saying that all available tools would be “recalibrated,” to counter the negative economic effects of the pandemic. She highlighted the downward risks to the economy and pledged to keep supporting the region throughout the pandemic.
The Sterling Pound also edged sharply lower against the dollar, amid dollar’s strength and no fresh headlines coming from the Brexit front. Talks continue, but authorities said nothing. Meanwhile, the government reiterated that it’s against a total lockdown, despite the UK reported once again over 20K new daily coronavirus cases.
Gold plunged to 1,859.90, bouncing during the US afternoon to settle at around 1,870. The bright metal will likely remain under pressure unless central banks and government announce more fiscal and financial support.
Crude oil prices plunged with WTI trading as low as $34.90 a barrel, weighed by the dismal market mood.
Cryptocurrencies Price Prediction: Bitcoin, Litecoin & DigiByte – American Wrap 29 Oct
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.