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Forex Today: Focus remains on central bank speak

Here is what you need to know on Wednesday, November 8:

In the absence of high-impact data releases mid-week, market participants will continue to pay close attention to comments from central bank officials. Eurostat will release September Retail Sales data for September and the US economic docket will feature the IBD/TIPP Economic Optimism Index data for October alongside September Wholesale Inventories.

Bank of England (BoE) Governor Andrew Bailey will deliver a keynote address at ‘Financial System Conference, achieving good outcomes in an uncertain world’ organized by the Central Bank of Ireland. Later in the day, Federal Reserve (Fed) Chairman will present opening remarks before the Federal Reserve Division of Research and Statistics Centennial Conference. Fed Governor Lisa Cook and New York Fed President John Williams will also be speaking during the American trading hours. European Central Bank (ECB) President Christine Lagarde will participate in the Eurogroup meeting in Brussels. ECB chief economist Philip Lane and policymakers Pablo Hernández de Cos and Joachim Nagel will be delivering speeches as well.

The cautious market mood allowed the US Dollar (USD) to gather strength against its rivals on Tuesday and the USD Index closed the second straight day in positive territory. Early Wednesday, the USD Index continues to edge higher, supported by rising US Treasury bond yields. At the time of press, the benchmark 10-year US Treasury bond yield was up nearly 1% on the day at 4.61%, while US stock index futures were trading modestly lower.

US Dollar price this week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Australian Dollar.

 USDEURGBPCADAUDJPYNZDCHF
USD 0.47%0.82%0.85%1.27%0.81%1.03%0.25%
EUR-0.47% 0.36%0.38%0.80%0.35%0.55%-0.21%
GBP-0.82%-0.36% 0.01%0.45%-0.01%0.21%-0.57%
CAD-0.86%-0.39%-0.02% 0.42%-0.03%0.17%-0.60%
AUD-1.28%-0.81%-0.46%-0.42% -0.46%-0.24%-1.03%
JPY-0.82%-0.34%-0.22%0.06%0.46% 0.21%-0.56%
NZD-1.04%-0.55%-0.20%-0.17%0.26%-0.20% -0.77%
CHF-0.26%0.22%0.56%0.60%1.00%0.56%0.77% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

EUR/USD registered losses for the second consecutive day on Tuesday and retreated below 1.0700 in the European morning.

GBP/USD lost more than 50 pips and closed below 1.2300 on Tuesday. The pair stays on the back foot early Wednesday and continues to edge lower toward 1.2250.

The data from Japan showed that the Leading Economic Index declined to 108.7 in September from 109.2. USD/JPY showed no reaction to this data and was last seen fluctuating above 105.50.

Gold declined to a 10-day low below $1,960 on Tuesday but managed to erase a small portion of its losses in the late American session. XAU/USD stays relatively quiet early Wednesday and moves up and down in a tight channel slightly below $1,970.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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