FX Today: The BoE expected to keep policy rate unchanged, US shutdown hits record

Pablo Piovano FXStreet

The US Dollar (USD) maintained its upside momentum for yet another day, navigating the area of multi-month tops amid further repricing of Fed rate cuts and the still unresolved US federal government shutdown, which is now the longest in history.

Here’s what to watch on Thursday, November 6:

The US Dollar Index (DXY) climbed to fresh highs near 100.40 for the first time since late May, helped by a decent uptick in US Treasury yields across the curve and the firmer-than-expected ISM Services PMI in October. The Challenger Job Cuts will be the sole release on the US docket. In addition, the Federal Reserve's (Fed) Barr, Williams, Paulson, Hammack, Waller and Musalem are all due to speak.

EUR/USD slipped back below 1.1470 to hit new three-month lows, trading on the defensive for the sixth consecutive day. Germany’s Industrial Production and the HCOB Construction PMI are due, prior to Retail Sales and the HCOB Construction PMI in the euro zone. Furthermore, the ECB’s Schnabel, De Guindos, Buch and Lane are due to speak.

GBP/USD attempted a tepid comeback after bottoming out near the key 1.3000 support, or sevent-month troughs. The BoE meets ahead of the release of the S&P Global Construction PMI and the BoE’s Decision Maker Panel (DMP).

USD/JPY resumed its uptrend and surpassed once again the 154.00 barrier following modest gains in the Greenback and rising US Treasury yields. Next on tap in Japan will be the Household Spending figures and the weekly Foreign Bond Investment readings.

AUD/USD clocked decent gains following an early drop to three-week lows near 0.6460. Next on the Australian calendar will be the Balance of Trade results.

WTI lost the grip and retreated to four-day lows, breaking below the key $60.00 mark per barrel as traders gauged the stronger US Dollar, cooling economic activity data from China and the larger-than-expected weekly build of US crude oil inventories.

Gold rose markedly, reversing three consecutive daily pullbacks and approaching the key $4,000 mark per troy ounce once again. Silver prices rebounded sharply leaving behind three straigh days of losses and reclaiming the $48.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

USD/JPY: Bears remain in control with focus on 155.00

USD/JPY accelerates its severe pullback and slips back to the 155.40-155.30 band, flirting with seven-month lows on Thursday. The sharp decline in spot comes as investors continue to assess a potential rate hike by the BoJ as soon as its September 18 meeting.

AUD/USD ranges above 0.7150 despite upbeat Chinese PMI

AUD/USD struggles to capitalize on the previous day's bounce from a nearly two-week low and ranges above 0.7150 in Asia on Thursday, as dismal Australian trade data counter upbeat China's RatingDog Services PMI. However, the pair's upside remains in check as the US Dollar stalls the weak ADP report-led slide amid escalating US-Iran tensions and firming September Fed rate-hike bets.

Gold struggles to extend the bounce past $4,500

Gold adds to Wednesday’s gains and reclaims the area near the key $4,500 mark per troy ounce on Thursday. The strong decline in the US Dollar coupled with further weakness in US Treasury yields across the board also bolsters the move higher in the precious metal.

XRP defends key support, XLM awaits breakout as derivatives strengthen

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Bitcoin steadies as markets turn cautious ahead of key economic data

Bitcoin (BTC) steadies around $77,700 on Thursday, trading sideways after its sharp rally during the second half of August. Institutional demand supports this range-bound price action, with spot Exchange Traded Funds (ETFs) recording mixed flows so far this week

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.