Forex Today: Dollar starts the week with the wrong footing

FXStreet Team FXStreet

Here is what you need to know Monday, November 3rd:

The dollar was the worst performer, falling against all of its major rivals on the back of a dismal ISM Manufacturing PMI down to 58.1 in November.
Risk aversion took over the financial markets amid the back and forth in the trade war front. US President Trump triggered the dismal sentiment ahead of Wall Street’s opening, by announcing immediate tariffs of base metals’ imports coming from South America. Earlier in the day, China said it won’t allow the visit of the US military to Hong Kong and announced sanctions against several US non-government organizations for encouraging protesters. Also, Wilbur Ross claimed Trump could lift tariffs on China if a deal is not reached. Finally, White House advisor, Conway, announced phase one of China trade deal is being written up, but his words were too little too late.
The Sterling was the worst performer, ending the day around 1.2930, unchanged from Friday’s close against the greenback, as polls suggest a hung Parliament.
Wall Street collapsed, safe-haven yen appreciated, and gold also advanced, although at a slower pace. The bright metal retains a neutral stance.
Crude oil prices held at the lower end of the last week’s range, as investors wait for fresh clues on OPEC+ next move.
Cryptocurrencies consolidated weekend losses.
AUD/USD trades at over one-week highs ahead of the RBA monetary policy announcement. The central bank is expected to maintain the status quo.

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.