What you need to know before markets open:
•    Bank of England delivered extra dovish rate hike saying future moves are limited and very gradual. 
•    US stocks and the US Dollar fell after details of the Republican tax cut plan were revealed.
•    US President Trump nominated Jerome Powell for Federal Reserve chairman.
•    The US October labor market report is in market focus with the private forerunner ADP labor market survey beating the forecast by 17.5% on the upside. (historical correlation is charted)

Friday’s market moving events
•    Caixin services PMI for October rose to 51.2 in October, picking up from September’s 21-month low, but was modest overall and remained weaker than the historical average.
•    The UK services PMI is set to decrease 53.3 in October.
•    The US NFP report is expected to see 312K new jobs added in the US economy in October after falling by 33K in September. The unemployment rate is seen steady at 4.2%.
•    Canadian unemployment rate is expected to remain steady at 6.2% in October with employment rising 15K.
•    US ISM in non-manufacturing is expected to decelerate to 58.5 in October.
•    Minneapolis Fed President Neel Kashkari is scheduled to participate in moderated Q&A with Women in Housing and Finance, in Washington DC at 16:15 GMT.
•    ECB’s executive board member Benoit Cœuré participates in a panel discussion "Economic Forum: The Global Financial Cycle – Causes, Consequences, and Policy Responses" in Washington DC at 20:15 GMT.

Major forex market movers
•    Sterling fell 200 pips to below $1.3100 with Bank of England delivering extra dovish rate hike.
•    Markets showed a little-to-no reaction to President Trump’s nomination of Jerome Powell to lead the Federal Reserve but reacted negatively to details of Republican tax cut plan.
•    US labor market report is in focus as Fed is on its way to Deliver rake hike in December.
•    Canada’s labor market and international trade balance are to test CAD’s resilience at C$1.2900 level. 

Thursday’s macro summary
•    Italian manufacturing PMI rose to 57.8, up from 56.3 in September indicating strong growth of the sector.
•    French manufacturing PMI posted 56.1 in October, unchanged from September and the highest since April 2011.
•    German manufacturing PMI reached 60.6, unchanged from September’s 77-month high.
•    Eurozone manufacturing PMI rose to 58.5, reaching the 80-month high in October.
•    German unemployment rate fell to 5.5% in September, the lowest level since November 1990. 
•    The UK construction PMI rose to 50.8 in October, but optimism falls to lowest in almost five years.
•    The Bank of England hiked the Bank rate to 0.50% in line with expectations but cut the outlook for further policy normalization indicating only two 25 basis points rate hikes for next three years. 
•    US labor productivity rose 3.0%q/q in Q3 2017 after rising merely 1.5% q/q in Q2.
•    Republicans are expected to unveil a tax reform plan Thursday that would permanently lower the corporate tax rate to 20%.
•    Details of the Republican plan to cut taxes revealed that the deduction of mortgage debt for newly purchased homes will be halved to $500,000, hitting the construction industry and affecting US Dollar negatively.
•    Fed Governor Jerome Powell spoke in a panel discussion focusing on LIBOR transformation; no monetary policy issues were discussed.
•    ECB's Weidmann said the ECB board members agree that an accommodating monetary policy remains necessary, but ECB ready to act should US monetary tightening have an impact on price formation in the Eurozone. Weidmann also noted that Catalonia crisis could have an impact on Spain's economic outlook.
•    The US President Trump officially appointed Jerome Powell for Fed chairman after Janet Yellen’s term ends on February 2, 2018. Yellen said she is committed to working with Powell to ensure a smooth transition.

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

AUD/USD: Stellar performance refreshes 18-week top above 0.6800, RBA eyed

Having dominated the markets at the week’s start, AUD/USD bulls keep the reins around 0.6810, high of 0.6814, at the beginning of Tuesday’s Asian session. RBA is widely anticipated to keep the current monetary policy unchanged.


USD/JPY looks for a firm direction above 107.00 with eyes on US civil unrest

USD/JPY fails to extend the previous day’s losses amid fresh challenges to risk. The yen pair dropped the previous day amid broad US dollar weakness. A lack of data from Japan keeps traders focused on the geopolitical issues for fresh impulse.


Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Pointing beyond the Moon

XRP remains on the sidelines, although it could join the bullish run. The crypto market is starting to remind us of times gone by, with dazzling rises across the crypto board that draw the public's attention.

Read more

Gold: Bulls cheer immediate rising channel, aim for $1,753

Gold prices print four-day winning streak to probe $1,740. A four-day-old ascending trend channel formation and sustained trading above 200-HMA keeps buyers hopeful. $1,710 offers key support ahead of Wednesday’s low.

Gold News

WTI trading near session’s lows around $34.80 a barrel

Crude oil is trading near session’s lows as WTI is trading above the main SMAs on the four-hour chart. However, as the black gold remains fragile in a dominant downtrend, it remains to be seen if WTI can regain the 36.00 resistance. 

Oil News

Forex Majors