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Forex Today: Focus now shifts to the US labour market and real economy

The US dollar held steady, finishing almost unchanged from Monday’s close. This stability came amid a slowdown in the rally of US yields, ongoing uncertainty ahead of the US election, and anticipation of key US data releases.

Here is what you need to know on Wednesday, October 30:

The US Dollar Index (DXY) kept its inconclusive price action in the low-104.00 against the backdrop of a widespread cautious trade in the global markets. The usual MBA’s Mortgage Applications is due, seconded by the ADP Employment Change, the advanced Q3 GDP Growth Rate, Pending Home Sales, and the EIA’s weekly report on US crude oil inventories.

EUR/USD managed to rebound from earlier lows near 1.0770 and reclaimed the area just above the 1.0800 hurdle. Germany’s preliminary Inflation Rate takes centre stage along with EMU’s flash Q3 GDP Growth Rate, the final Consumer Confidence print, Economic and Industrial Sentiment, and the ECB’s Consumer Inflation Expectations. In addition, the ECB’s Schnabel is due to speak.

GBP/USD was the outperformer in the risk complex amidst rising expectations ahead of the release of the Autumn Budget on Wednesday.

USD/JPY maintained its trading range in the area of recent multi-week highs, although further gains remained limited by the 154.00 region. Japan’s Consumer Confidence gauge will be released.

Further concerns around China continued to weigh on the Aussie Dollar, sending AUD/USD to new two-month lows near 0.6550. The RBA’s Monthly CPI Indicator is next on tap seconded by the Q3 Inflation Rate.

Market chatter around the likelihood of a diplomatic solution for the crisis in Lebanon sent prices of WTI below the $67.00 mark per barrel, or four-week lows.

Gold prices rose to an all-time high past the $2,770 mark per ounce troy on the back of persistent geopolitical effervescence and prospects of further easing by major central banks. Silver prices rose to four-day highs well north of the $34.00 mark per ounce.

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Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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