Forex Today: BoJ to leave rates unchanged

Pablo Piovano FXStreet

The US Dollar (USD) has come under renewed downside pressure on Thursday, receding to three-day lows while market participants assessed the ECB’s interest rate decision and kept monitoring developments from the Middle East crisis.

The US Dollar Index (DXY) has retreated for the second day in a row, briefly breaching below the key contention zone at 102.00. The Chicago PMI will wrap up the docket, seconded by the quarterly Employment Cost Index data.

The hawkish tone from the ECB and the renewed selling pressure on the US Dollar have lent extra legs to the EUR/USD’s recovery, with spot surpassing the 1.1170 level. Germany will publish its labour market report, along with flash Q3 GDP Growth Rate figures and the preliminary Inflation Rate. In addition, advanced Q3 GDP Growth Rate data in the broader euro area will also be released.

GBP/USD has built on Wednesday’s gains and advanced to three day tops, refocusing on the key 1.3400 hurdle. The Nationwide Housing Prices are due, followed by the BoE’s Decision Maker Panel (DMP).

USD/JPY has managed to reverse the previous day’s retracement and revisit the area above the 158.00 yardstick. The BoJ is expected to leave its interest rate unchanged, while the Unemployment Rate, the Tokyo CPI, Retail Sales, flash Industrial Production data, Housing Starts and Construction Orders will also fulfil the domestic calendar.

AUD/USD has lost momentum soon after hitting five-week highs near 0.7070, eventually ending the day with modest losses in the low 0.7000s. The quarterly Producer Prices will be published alongside Housing Credit/Private Sector Credit figures.

Front-month WTI futures (December contract) have traded slightly lower, regaining some ground after a brief drop below the $100.00 mark per barrel amid renewed hopes of a diplomatic solution to the Middle East conflict.

Gold has lost traction, reversing three daily advances in a row and refocusing on the key $4,000 mark per troy ounce. Persistently elevated US inflation continues to underpin the Fed’s tighter-for-longer stance, keeping the yellow metal under pressure.

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 edges higher above 0.7050 as hot CPI lifts RBA rate hike odds

The AUD/USD pair gathers strength to near 0.7055 during the Asian trading hours on Thursday. The Australian Dollar edges higher against the US Dollar as hotter inflation data bolsters expectations of Reserve Bank of Australia rate hikes. The US September Personal Consumption Expenditures inflation report will be in the spotlight later on Thursday.

USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold remains sidelined just above $4,000

Gold leaves behind the recent three-day positive streak and faces renewed selling pressure near the $4,000 mark per troy ounce on Thursday. The precious metal’s daily decline comes amid marginal gains in the US Dollar and mixed US Treasury yields, while crude oil prices remain on the back foot.

Top Altcoins Price Forecast: Ripple and Solana under pressure as Hyperliquid recovers

Ripple is down over 2% on Thursday, extending losses below $1.30 and capped below crucial moving averages. Solana drops 2% so far, testing its 200-day EMA and the $100 psychological level amid mounting selling pressure.

BoJ preview: Hawkish hold

Having hiked rates by 25bp to 1.25% in September, the central messages from the BoJ were largely similar; upside price risks remained, real interest rates were still negative and further policy rate hikes should be expected.

A hot US economy is supposed to sink Gold. It didn't. Here's why

Gold (XAU/USD) remains under pressure near $4,000, as stronger-than-expected United States (US) economic data reinforce expectations of another Federal Reserve (Fed) interest rate hike in December. Economic growth is accelerating, inflation remains elevated, and borrowing costs could rise further.