Forex Today: US Payrolls and U-Mich come next

Pablo Piovano FXStreet

The US Dollar (USD) has maintained its bearish tone, building on Wednesday’s election-led marked pullback on Thursday. The marginal decline has come amid a generalised cautious mood, with the hangover from the US midterm election results still in place, all ahead of the release of Nonfarm Payrolls for October.

The US Dollar Index (DXY) has traded in a vacillating fashion, revisiting the 101.70 region amid the widespread decline in US Treasury yields. The Nonfarm Payrolls (NFP), Unemployment Rate and the flash U-Michigan Consumer Sentiment gauge will all close the weekly calendar.

EUR/USD met decent contention near the 1.1200 region before staging a modest rebound, eventually ending the day with humble gains. Industrial Production in Germany is due, along with the EMU’s Producer Prices.

GBP/USD has alternated gains with losses around 1.3470, struggling to extend its multi-day positive streak. The Lloyds House Price Index and the BBA Mortgage Rate will be released across the Channel.

USD/JPY has added to Wednesday’s retracement and briefly revisited the 157.80 zone. Next on tap in the Land of the Rising Sun will be the Average Cash Earnings, seconded by the weekly Foreign Bond Investment figures.

AUD/USD has retreated markedly, reaching fresh three-week lows in the 0.6940 region following some discouraging comments from the RBA’s Hauser and the widespread caution in the global markets. Next on tap in Oz will be the final prints of Building Permits and Private House Approvals on November 9.

Following a brief drop to the $86.00 region per barrel, front-month WTI futures (December contract) have rebounded markedly, reclaiming the $90.00 mark and beyond amid persistent uncertainty surrounding the US-Iran-Hormuz puzzle.

Gold has built on the previous day’s advance, climbing past the $4,100 mark per troy ounce amid the US Dollar’s inconclusive price action, shrinking US Treasury yields across the curve and further investors’ assessment of the Democrats’ win at the midterm elections.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold consolidates gains around $4,100

Gold now surrenders part of its initial bull run, although it sticks to the $4,100 region per troy ounce on Thursday. The yellow metal extends it recovery on the back of the lacklustre performance of the US Dollar and declining US Treasury yields following the US midterms elections.

Bitcoin falls below $76,000 as NASDAQ drops 5% on AI sell-off

Bitcoin (BTC) and the wider crypto market fell on Thursday as US markets opened. Losses in AI-related stocks pushed the NASDAQ Composite (IXIC) down as much as 5% amid concerns that Democrats' control of both chambers of the US Congress could lead to tighter crypto and AI regulations.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.