USD mixed to marginally lower – Scotiabank

FXStreet Insights Team FXStreet

The US Dollar (USD) is mixed but tracking a little lower overall as the Dollar Index (DXY) continues to drift back from the 99 zone where the index appears to have peaked after its latest run higher, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Markets await FOMC Wednesday

The Japanese Yen (JPY) is the top-performer on the session among the majors and now looks to have set a short-term peak in the low 153 zone. President Trump’s visit to Japan saw the two countries reaffirm their relationship and agree to co-operate on rare earths. The president welcomed plans to boost defence spending. The Japanese government said it will continue to monitor the impact of yen weakness on the economy, helping lift the JPY. The JPY is still lagging the recent narrowing in US/Japan rate spreads by a significant margin."

"A sustained pickup in the JPY in the short run could see spot retest recent lows just under 150–which could trigger a deeper JPY rebound. Regional FX has been pulled higher on the JPY’s coattails. While the CNY is lagging some of its Asian peers, the USD has eased below the CNY7.10 level to its lowest in a year which may represent a broader headwind for the USD. With few notable developments elsewhere, markets have little to do but idle ahead of Wednesday’s Fed policy decision. Global stocks are mixed to slightly weaker while major bond markets are mostly firmer. Gold continues to soften, down nearly 2% on the session and nearing $3900."

"There is a little US data to focus on but second-tier housing data at 9ET, followed by the Richmond Fed Manufacturing Index and consumer confidence data at 10ET are unlikely to move the markets significantly. Regional manufacturing survey data for October so far have been mixed but may suggest some further slowing in the national ISM Manufacturing index (reported at 49.1 in September) when the latest data are released on November 3. Australia releases inflation data this evening at 20.30ET. RBNZ Governor Hawkesby speaks on central bank independence. The RBNZ was a pioneer in the move to central bank independence when it adopted inflation targeting around 1990 so it might have something to say on the matter."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.