Forex Today: Dollar returns with a vengeance

Valeria Bednarik FXStreet

What you need to know on Friday, November 5:

On Thursday, the American dollar is the overall winner, resuming its advance and reaching fresh weekly highs against high-yielding rivals. On the other hand, safe-haven assets edged higher against the greenback, although without breaking any critical level.

The Bank of England had a monetary policy meeting and decided to leave the benchmark interest rate unchanged at 0.1%, disappointing markets that were anticipating a rate hike and further boosting the dollar’s demand. The GBP/USD pair plummeted to 1.3470, to end the day around the 1.3500 figure.

The EUR/USD pair met sellers around 1.1615 for a third consecutive day, with bulls giving up, resulting in a test of 1.1527. AUD/USD briefly pierced the 0.7400 figure, settling around the level, while USD/CAD jumped to 1.2460, despite plummeting crude oil prices. WTI currently trades around $79.10 a barrel after the OPEC+ decided to maintain its current output steady at 400K barrels per day.

Gold returned to its comfort zone just below the 1,8000 mark, currently trading at around $1,793.00 a troy ounce.

Central bankers are putting a lot of effort into down-talking inflation concerns. BOE’s Governor Andrew Bailey noted that “the warning signs are there, the bells are ringing, as it were, so we have to watch this carefully, and that’s what we’re doing,” but he added that they yet see medium-term inflation “de-anchored.” On Wednesday, US Federal Reserve Chief Jerome Powell delivered a similar message, repeating that inflation is high but still expecting it to normalize without the central bank’s intervention.

European equities benefited from a dovish BOE, ending the day in the green. Wall Street was unable to follow the lead and finished the day mixed.

US Treasury yields retreated, with that on the 10-year note hitting an intraday high of 1.60% to settle near a daily low of 1.509%.

The week will end on a high note, as the US will publish the Nonfarm Payrolls report.

Dogecoin and Shiba Inu at war as Binance, Crypto.com add SHIB-DOGE trading pair

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.