Market Drivers – US Session, Nov. 8

Gold is still under pressure; it is now trading below $1,950, and it is at its lowest point since October 19. The drop in Treasury yields did not help the yellow metal. Due to the decline in Gold, Silver finished the day unchanged at $22.50.

On Wednesday, the US dollar showed mixed results; it increased versus riskier currencies but declined against the Euro and Pound. The US Dollar index (DXY) reached its highest point at 105.80 before retreating to 105.55.

It was a quiet session in the Treasury market, with no major economic reports. The yield on the 10-year Treasury fell to 4.50%. Following new weekly highs for the major indexes, Wall Street closed the day largely unchanged.

The weekly Jobless Claims report is due on Thursday. Later in the day, Federal Reserve Chair Jerome Powell will participate in a panel discussion titled “Monetary Challenges in a Global Economy.” It is unclear at this point if Powell will provide any new insights. The next key report in the US will be the Consumer Price Index on November 14.

China will release the Consumer Price Index and Producer Price Index for October on Thursday. These figures will be closely watched.

EUR/USD posted modest gains after rebounding from the 55-day Simple Moving Average (SMA) around the 1.0700 area during the American session. The European Central Bank (ECB) will release its economic bulletin.

GBP/USD hit three-day lows but then trimmed losses, rising to 1.2300. The Pound also lost ground against the Euro, with EUR/GBP rising above 0.8700. UK growth data is due on Friday.

USD/JPY rose for the third consecutive day, climbing to 151.00, despite the decline in government bond yields and the mixed tone in Wall Street. On Thursday, the Bank of Japan will release the Summary of Opinions from the Monetary Policy Meeting held on October 30-31.

USD/CAD climbed for the third consecutive day, testing levels above 1.3800, driven by a stronger US Dollar and lower crude oil prices, which dropped more than 2%. WTI crude fell to $75.50, the lowest level since July.

Antipodean currencies slid during the American session, with AUD/USD dropping to test 0.6400 and NZD/USD approaching 0.5900.

The Summary of Opinions will be made public by the Bank of Japan during the Asian session. China’s inflation statistics will be a crucial report that can affect investor mood. The weekly US Jobless Claims report is due later in the day.