Market Drivers – US Session, Nov. 7

Metals continued to be pressed. Silver reached a two-week low of $22.43 and is trading dangerously below $22.80. Gold fell to a two-week low of $1956 before retreating from its losses.

aDuring the American session, the US dollar weakened due to rising Wall Street stocks and a reverse in Treasury yields. The US Dollar Index increased for the second day but ended the day at around 105.50.

On Wednesday, there are no important US reports due, with Fed Chair Jerome Powell giving the keynote address. The Fed officials have agreed that data will guide future decisions, and while they do not rule out further tightening, it appears that the Fed is done raising interest rates.

EUR/USD recovered at 1.0670, moving back up towards the 1.0700 region. Germany’s final consumer inflation reading and the Eurozone will report on September retail sales.

The Bank of England maintained its dovish policy outlook, with GBP/USD declining for the second day in a row. The USD/JPY strengthened for a second day, testing levels above 150.50, but is still bullish in the near term.

The Australian Dollar was among the worst performers on Tuesday, despite the Reserve Bank of Australia’s (RBA) rate hike.

The NZD/USD pair declined more from 0.6000 to 0.5908 before rising to 0.5940. The Reserve Bank of New Zealand (RBNZ) will release the fourth-quarter inflation expectation report during the Asian session, with data from Japan’s Leading Economic Index being made public.