What you need to know on Friday, October 29:
The dollar tumbled after two first-tier events, ending the day sharply lower across the FX board. The preliminary estimate of Q3 Gross Domestic Product was up a modest 2%, missing expectations. Wall Street recovered from Wednesday’s slump, as poor growth hints at less aggressive financial tightening.
The European Central Bank left its monetary policy unchanged as anticipated. The statement was pretty much a copy of the previous meeting, with policymakers pledging to maintain financial support for as long as needed and repeating that inflation will soon recede from the current 13-year high.
Among other things, President Christine Lagarde said that the PEPP will likely end on March 2020, as originally planned, but added that no rate hikes are to be expected throughout 2022. “What comes next, we will discuss in December,” she said. About inflation, she blamed it on higher energy prices and supply chain issues, but those able to read between lines noted that she and her colleges are more concerned than what they showed.
Brexit jitters returned. France detained a UK boat and another has been fined, amid an escalating row over fishing rights. The British government summoned France's ambassador to clarify the situation.
The EUR/USD pair flirted with the 1.1700 level, now hovering in the 1.1680 price zone. GBP/USD met sellers around 1.3800, with Brexit headlines capping the advance.
Commodity-currencies gained traction, with AUD/USD reaching its highest since early July. CAD gains were tepid, as oil prices remain subdued.
Gold struggled to overcome the 1,800 level despite the broad dollar’s weakness, settling at $1,798 a troy ounce. WTI ended the day at $82.80 a barrel.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos slow down while bulls defend the uptrend
Like this article? Help us with some feedback by answering this survey:
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.