Market Drivers; US Session

US Dollar Weakens on Yen Strength and Fed Rate Hike Uncertainty
The US Dollar weakened on Thursday as the Japanese Yen strengthened after a slightly hawkish tone from the Bank of Japan. The upcoming US labor market report on Friday is crucial for determining the Federal Reserve’s future rate hike path.

Key Currency Pairs and Economic Data

• EUR/USD rose towards 1.0900, supported by sticky inflation in the Eurozone and reduced expectations for a large ECB rate cut.
• GBP/USD fell to a two-month low near 1.2840, despite the US Dollar’s weakness and the recent UK Autumn Budget.
• USD/JPY plunged to a weekly low below 152.00 after the BoJ maintained rates but signaled potential future hikes.
• AUD/USD recovered from initial losses but struggled to break above 0.6600.

Commodities
• Oil: Prices rose above $70 per barrel, driven by strong US demand expectations and potential OPEC+ production cuts.
• Gold: Prices fell to a three-day low near $2,730 per ounce, but the overall outlook remains positive.
• Silver: Prices also declined, reaching a multi-day low near $32.50 per ounce.
Economic Releases to Watch
• US: Nonfarm Payrolls, S&P Global Manufacturing PMI, ISM Manufacturing PMI, Construction Spending
• UK: Nationwide Housing Prices, S&P Global Manufacturing PMI
• Japan: Jibun Bank Manufacturing PMI
• Australia: Judo Bank Manufacturing PMI, Producer Prices, Home Loans, Investment Lending for Homes