Before the FOMC event, the US election continues to receive the majority of market focus. Amid increased expectations ahead of the US election results and the next Fed meeting, the US dollar was mostly defensive on Tuesday, falling to three-week lows.
What you need know on Wednesday, November 6:
Despite a respectable recovery in US rates throughout the curve, the US Dollar Index (DXY) continued its downward trajectory, returning to the area around 103.40. The EIA’s weekly data on US crude oil inventory is coming after the regular weekly mortgage applications.
Additional advances sent EUR/USD to new four-week highs close to 1.0940, which also happens to be the intermediate 100-day SMA. Along with Germany’s factory orders and the EMU’s producer prices, the final HCOB Services PMI for Germany and the euro area is due. Buch and De Guindos of the ECB are also scheduled to speak.
GBP/USD rose for the fourth consecutive session, hitting fresh multi-day highs and regaining the 1.3000 barrier and beyond. The PMI for S&P Construction will be released.
Further downward pressure caused the USD/JPY to retreat to two-week lows, or the 151.40-151.30 zone. The final Jibun Bank Services PMI and the BoJ Minutes are the next items on tap.
The softer US dollar helped AUD/USD break above the 0.6600 barrier, surpass the important 200-day SMA, and reach new two-week highs. There will be an unveiling of the RBA Chart Pack.
WTI prices rose to three-week highs above $72.00 a barrel before losing all of those gains and closing the day marginally down as traders continued to evaluate OPEC+’s recent decision to delay its December oil output rise.
On the strength of continued caution ahead of the US election, gold prices extended to Monday’s modest gains and bounced back to the $2,750 area per ounce. The price of silver increased in tandem, reaching two-day highs close to $33.00 an ounce.
Tags gbp/usd us dollar US elections WTI
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