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In Today in Forex The US Dollar (USD) maintained its ongoing depreciation against a basket of other currencies due to a combination of mixed macroeconomic data releases from the United States on Thursday. The USD Index (DXY) saw a decline of 0.5% during the day. As we approach early Friday, the DXY has remained relatively steady, hovering around the 106.00 mark. Investors are eagerly awaiting the release of October’s labor market data, including figures for Nonfarm Payrolls and wage inflation. Additionally, the US economic agenda will include the ISM Services PMI report.
Today in Forex :US Economic Data and Global Market Trends An Overview
Data from the US on Thursday indicated that Unit Labor Costs experienced a quarterly decline of 0.8% in the third quarter. While weekly Initial Jobless Claims increased from 212,000 to 217,000. On a more positive note, Factory Orders showed a 2.8% monthly increase in September. It’s worth noting that the benchmark 10-year US Treasury bond yield dropped by over 1%, falling below 4.7%. Which added further pressure on the USD. In contrast, Wall Street’s primary indexes posted significant gains, primarily driven by risk appetite. Early on Friday, US stock index futures are displaying a mixed picture.
In China, the Caixin Services PMI inched up to 50.4 in October from 50.2 in September. Meanwhile, the Australian Bureau of Statistics reported a 0.2% growth in Retail Sales for the third quarter. Bouncing back from the 0.6% contraction recorded in the preceding quarter. The AUD/USD exchange rate appeared largely unmoved by these developments, with the pair trading with minimal fluctuations just below 0.6450.
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Although the EUR/USD pair retraced some of its daily gains during the American trading session, it ended Thursday in positive territory. In the early European trading hours on Friday, the pair oscillated within a narrow range, staying slightly above the 1.0600 level.
BoE’s November Decision and Currency Market Trends
As widely anticipated, the Bank of England (BoE) decided to keep its policy rate unchanged at 5.25% following the November policy meeting. Governor Andrew Bailey did not definitively rule out the possibility of another rate hike but conveyed a relatively cautious stance regarding further tightening. The GBP/USD benefited from the broader weakness of the USD. Briefly climbing above the 1.2200 level on Thursday before entering a consolidation phase in the early hours of Friday.
The USD/JPY pair continued its decline due to decreasing US yields and concluded a second consecutive day in negative territory on Thursday. The pair remains under pressure but manages to hold above the 150.00 threshold.
In contrast, XAU/USD, or gold, struggled to capitalize on the weakening USD on Thursday and ended the day with little change, trading near the $1,985 level. Gold’s price movements appeared indecisive early on Friday, fluctuating within a narrow range just below $1,990.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
