Forex Today: Fear will continue to be the main market motor

FXStreet Team FXStreet

Here is what you need to know on Monday, November 2:

The greenback finished October with gains against most major rivals, backed by a sour market’s sentiment. Concerns related to the number of new coronavirus cases in Europe and the US, alongside uncertainty about the US presidential election, were behind the dismal mood.

The EUR/USD pair closed the week at November lows at 1.1640, as the ECB anticipated more stimulus coming in December, forecasting another economic setback in the last quarter of the year, as restrictive measures were announced in France, Germany, Spain and Italy, in an attempt to curb contagions.

The GBP held above 1.29 against the American currency but may start the week gapping lower, as UK Prime Minister Boris Johnson announced a nationwide one-month lockdown on Saturday, starting on November 2.

The Japanese yen strengthened against the greenback due to its safe-haven condition, given up some gains at the end of the week amid resurgent government bond yields. The yield on the benchmark 10-year Treasury note finished the week at 0.87%.

Equities remained under pressure, with Wall Street closing in the red on Friday. US indexes have their worst weekly performance since March.

Commodities also edged lower. Gold settled at $1,878 a troy ounce, while WTI finished at $35.70 a barrel.

Bitcoin Price Analysis: BTC/USD retreats after jumping to 33-month highs above $14,000

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EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.