Forex Today: Investors will closely follow the BoJ and PCE data
The Greenback’s rally continued to give some signs of potential exhaustion on Wednesday, despite encouraging prints from the job creation in the US private sector and further evidence of a resilient US economy.
Here is what you need to know on Thursday, October 31:
The US Dollar Index (DXY) receded to three-day lows and pierced the 104.00 support amidst the generalised weakness in US yields across the spectrum. The PCE data will take centre stage, seconded by the weekly Initial Jobless Claims, Personal Income and Spending, the Chicago PMI, Challenger Job Cuts, and the Employment Cost Index.
EUR/USD gathered extra steam and challenged the critical 200-day SMA near 1.0870, up for the third straight day. Germany’s Retail Sales and Import Prices are due in the first turn, seconded by the preliminary Inflation Rate in the euro area as well as the Unemployment Rate.
GBP/USD came under pressure following two daily advances in a row and a climb to four-month tops in UK 10-year gilts. The speech by the BoE’s Breeden will be the only event on the UK docket.
USD/JPY saw another session of sidelined trading amidst steady prudence prior to the interest rate decision by the BoJ and vital US data releases. The BoJ’s interest rate decision will be the salient event followed by the BoJ Quarterly Outlook Report. In addition, advanced Industrial Production results are due along with weekly Foreign Bond Investment figures, Housing Starts, and Construction Orders.
AUD/USD regained the smile and reversed three daily retracements in arow, coming just short of the key 0.6600 hurdle. Retail Sales will be published in Oz, seconded by Housing Credit figures, Export and Import Prices, and Private Sector Credit data.
WTI prices rose to weekly highs on the back of a bullish weekly report from the EIA and speculation that the OPEC+ could delay its plans to boost the oil output in December.
Prices of Gold maintained their upside well in place, reaching an all-time peak near the key $2,800 mark per ounce troy. Silver prices, on the flip side, faded Tuesday’s robust uptick and deflated well below the $34.00 mark per ounce.