Forex Today: Sentiment to lead the weekly opening

FXStreet Team FXStreet

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

The American dollar was the strongest last week, although limited volumes, exacerbated by a long weekend in the US, kept majors within familiar levels. Month-end fixing and profit-taking saw it retreat ahead of the close.
Risk-off could be correlated to Brexit and the UK, as news over the weekend hint some Pound weakness at the opening, as, according to a BMG Research poll for The Independent, such lead has halved in just one week. The latest survey attributes a 39% vote intention for Conservatives, and a 33% to Labour. GBP/USD could gap lower at the weekly opening.
Risk-on could come from the hand of Chinese data, as the official November PMI beat the market’s estimates. The manufacturing index has come in at 50.2, after printing 49.3 in the previous month, the first time in expansion territory since April, while the non-manufacturing index printed at 54.4, much better than the previous 52.8. The Caixin Manufacturing PMI will be out this Monday, but won’t offset the outcome of the official figures.
Gold prices recovered sharply at the end of the week and closed at 1,463.00 a troy ounce.
Crude oil prices collapsed, down by roughly 5% on Friday, as comments coming from Arabian and Russian authorities put at doubt a production-cut extension at next week’s OPEC meeting.
Cryptocurrencies came under selling pressure throughout the weekend, BTC/USD nears $7,000.00.

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FXStreet Team

FXStreet

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.