Forex Today: German inflation and growth data kickstart busy central bank week

Eren Sengezer FXStreet

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

Financial markets stay relatively calm to start the new week, which will feature key central bank policy meetings and high-tier macroeconomic data releases. In the European session, third-quarter Gross Domestic Product (GDP) and October Consumer Price Index (CPI) data from Germany will be watched closely by market participants.

The US Dollar (USD) Index moved sideways in a tight range on Friday as the Personal Consumption Expenditures (PCE) Price Index data from the US came largely in line with market expectations but managed to post modest weekly gains. Early Monday, the USD Index holds steady near 106.50 and the benchmark 10-year US Treasury bond yield fluctuates below 4.9%. On Wednesday, the Federal Reserve (Fed) will announce monetary policy decisions.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the New Zealand Dollar.

	USD	EUR	GBP	CAD	AUD	JPY	NZD	CHF
USD		-0.03%	-0.15%	-0.07%	-0.32%	-0.24%	-0.44%	0.03%
EUR	0.04%		-0.11%	-0.04%	-0.29%	-0.21%	-0.40%	0.06%
GBP	0.15%	0.10%		0.05%	-0.20%	-0.11%	-0.31%	0.16%
CAD	0.10%	0.04%	-0.07%		-0.25%	-0.17%	-0.37%	0.09%
AUD	0.32%	0.30%	0.19%	0.24%		0.09%	-0.12%	0.35%
JPY	0.25%	0.22%	0.19%	0.15%	-0.09%		-0.20%	0.29%
NZD	0.45%	0.41%	0.29%	0.37%	0.10%	0.18%		0.44%
CHF	-0.03%	-0.04%	-0.16%	-0.08%	-0.34%	-0.27%	-0.46%

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).

Meanwhile, US stock index futures trade modestly higher on the day, pointing to an improvement in risk mood. Over the weekend, Israel's military continued fighting with Hamas in the northern region of Gaza as part of its ground operation. The UN Security Council is expected to hold an emergency meeting on Monday to discuss a pause in the conflict to provide humanitarian aid.

EUR/USD closed the previous week virtually unchanged and went into a consolidation phase at around 1.0550 to start the new week.

After stabilizing above 1.2100, GBP/USD moved sideways on Friday. Early Monday, the pair edged slightly higher but remained below 1.2150.

USD/JPY staged a rebound following the sharp decline on Thursday but lost its bullish momentum before reaching 150.00 on Friday. The pair was last seen moving up and down in a narrow channel near 149.50. In the early trading hours of the Asian session on Tuesday, the Bank of Japan (BoJ) will publish the interest rate decision and the monetary policy statement following the October meeting. The Japanese economic docket will also feature September Retail Trade and Unemployment Rate data.

Supported by the positive shift seen in risk sentiment, AUD/USD and NZD/USD pairs gained traction and were last seen trading at 0.6360 and 0.5835, respectively, both rising about 0.4% on a daily basis. NBS Manufacturing PMI and NBS Non-Manufacturing PMI surveys for October from China will be watched closely early Tuesday.

Gold price surged higher in the late American session on Friday and rose above $2,000 for the first time since May. XAU/USD started the new week with a small bearish gap and corrected lower toward $1,990.

Author

Eren Sengezer

FXStreet

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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