Forex Today: Trade optimism lifts commodity currencies, dollar gains against majors, top-tier US figure awaited


Here is what you need to know on Tuesday, November 5:

  • Market mood: The atmosphere is upbeat amid optimism that US-Sino trade talks are advancing toward an accord. The US is reportedly considering removing the latest round of 15% tariffs that were imposed on China on September 1. Chinese President Xi Jinping has said that his country will continue opening up to the world. Both sides are considering various locations for a summit between Xi and President Donald Trump. 
  • US Dollar: The greenback is consolidating its gains against major pairs seen late on Monday. The US ISM Non-Manufacturing Purchasing Managers' Index is set to show a pick up in activity in the services sector after the manufacturing sector disappointed. See preview
  • AUD/USD: The Reserve Bank of Australia left the interest rate unchanged at 0.75% as expected. The bank has indicated that it is comfortable with current policy and that the economy is at a "gentle turning point." The Aussie is on the rise. 
  • Europe: Christine Lagarde, President of the European Central Bank, refrained from touching on monetary or fiscal policy in her maiden speech in Berlin. However, she expressed some optimism. She called for Europe to be more confident. 
  • UK: The election campaign rages on with Prime Minister Boris Johnson and Labour leader Jeremy Corbyn bashing each other. Markit's Services PMI is set to remain just below 50 in October ~ reflecting minor contraction. Construction PMI missed with 44.2 points. 
  • Cryptocurrencies gained ground on Monday and are consolidating on Tuesday. Bitcoin is trading around $9,400. 
     

More The dollar 'should' fall, despite countervailing winds from a decent economy

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