Forex Today: US Dollar stabilizes ahead of key data, Fed policy decisions

Here is what you need to know on Wednesday, November 1:

The US Dollar (USD) stays relatively quiet early Wednesday after posting strong gains against its major rivals on Tuesday. ADP Employment Change and ISM Manufacturing PMI data for October will be featured in the US economic docket alongside JOLTS Job Openings for September. Later in the session, the Federal Reserve (Fed) will announce monetary policy decisions and Chairman Jerome Powell will speak on the outlook in a press conference.

ISM Manufacturing PMI Preview: Elevated investment set to boost index, US Dollar.

ADP Jobs Preview: A rebound that could not matter.

After opening lower, Wall Street's main indexes gained traction and posted modest gains on Tuesday. Despite the upbeat mood, the USD held its ground on rising US Treasury bond yields. Additionally, month-end flows on the last day of October provided an additional boost to the currency. The US Dollar Index rose more than 0.5% and erased Monday's losses before going into a consolidation phase above 106.50 on Wednesday. In the meantime, US stock index futures were last seen trading modestly lower on the day, while the 10-year yield was fluctuating in a narrow channel at around 4.9%.

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 Japanese Yen.

USD   -0.10% -0.28% 0.08% 0.00% 1.04% -0.13% 0.75%
EUR 0.09%   -0.18% 0.17% 0.10% 1.13% -0.04% 0.84%
GBP 0.28% 0.18%   0.32% 0.26% 1.31% 0.13% 1.03%
CAD -0.05% -0.17% -0.35%   -0.07% 0.96% -0.21% 0.67%
AUD 0.00% -0.08% -0.26% 0.06%   1.05% -0.13% 0.77%
JPY -1.05% -1.15% -1.24% -1.00% -1.06%   -1.19% -0.28%
NZD 0.15% 0.03% -0.16% 0.21% 0.11% 1.17%   0.88%
CHF -0.75% -0.84% -1.03% -0.68% -0.75% 0.30% -0.88%  

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).


The Fed is widely expected to leave its policy rate unchanged at 5.25%-5.5% for the second consecutive meeting. The statement language regarding the prospects for additional tightening and Chairman Powell's comments on the policy outlook could ramp up the volatility during the American trading hours. 

Federal Reserve Preview: Powell set to lift US Dollar by leaving door open to more hikes.

After rising to a weekly high above 1.0650, EUR/USD reversed its direction and closed in negative territory below 1.0600 on Tuesday. At the time of press, the pair was moving sideways slightly above 1.0550.

The data from New Zealand showed that Employment Change fell by 0.2% in the third quarter. This reading followed the 1% growth recorded in the second quarter and came in worse than the market expectation for an increase of 0.4%. Meanwhile, Caixin Manufacturing PMI in China dropped to 49.5 in October from 50.6 in September. NZD/USD came under bearish pressure and declined to the 0.5800 area following these disappointing data releases.

GBP/USD turned south and erased its daily gains after meeting resistance at 1.2200 on Tuesday. The pair holds steady at around 1.2150 early Wednesday.

USD/JPY gathered bullish momentum on the Bank of Japan's inaction on policy and reached its highest level in a year above 151.70 on Tuesday. During the Asian trading hours on Wednesday, Japan's top currency diplomat Masato Kanda said that they were concerned about one-sided sharp movements in the foreign exchange markets and reiterated that they will not rule out any steps to respond. The pair turned negative on the day below 151.50 following this verbal intervention.

Gold climbed above $2,000 on Tuesday but profit-taking seemingly triggered a sharp drop. XAU/USD was last seen moving up and down near $1,980.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content

Recommended content

Editors’ Picks

EUR/USD extends slide below 1.0700 on stronger USD, EU political angst

EUR/USD extends slide below 1.0700 on stronger USD, EU political angst

EUR/USD stays under bearish pressure and trades at its lowest level since early May below 1.0700. Unabated US Dollar demand amid risk aversion and looming EU political uncertainty exert downside pressure on the pair heading into the weekend.


GBP/USD slumps to multi-week lows below 1.2700

GBP/USD slumps to multi-week lows below 1.2700

GBP/USD extends its decline on Friday and trades at its lowest level in nearly a month below 1.2700. In the absence of high-tier data releases, the US Dollar continues to benefit from souring market mood, forcing the pair to stretch lower in the second half of the day.


Gold clings to recovery gains at around $2,330

Gold clings to recovery gains at around $2,330

Following Thursday's pullback, Gold holds its ground on Friday and trades in positive territory near $2,330. The benchmark 10-year US Treasury bond yield edges lower toward 4.2%, helping XAU/USD push higher ahead of the weekend.

Gold News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

Read more

Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap

Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap

It will be another central-bank-heavy week with the RBA, SNB and BoE. Retail sales will be the highlight in the United States. Plenty of other data also on the way, including flash PMIs and UK CPI.

Read more