Market Drivers – US Session, October 30

Gold retreated after surging on Friday and is trading slightly below $2,000. Silver initially surged towards October highs but later trimmed its gains, settling at $23.30.

Markets are looking forward to a busy Tuesday in the middle of a loaded week with central bank meetings and key economic data. Risk appetite boosted Wall Street on Monday, with the main stock indices holding onto gains of more than 1%.

The US Dollar Index fell 0.45% to 106.10, experiencing its worst day in a week. US Treasury yields made no significant moves, with the 10-year yield hovering around 4.86%.

EUR/USD has risen above 1.0600 and is approaching the resistance area around 1.0630. The pair maintains a modest bullish tone, while EUR/GBP posted its highest daily close since May, trading above 0.8700.

The Australian Dollar (AUD) is performing well, with retail sales exceeding expectations and private sector credit data set to be released. AUD/USD has risen for the third consecutive day, reaching 0.6400, and NZD/USD reached its highest level since June.

The Japanese Yen strengthened across the board after Nikkei reported that the Bank of Japan may allow long-term yields to rise above 1%.


The BoJ will announce its decision on Tuesday, with some analysts considering it to adjust its Yield Curve Control policy by allowing the 10-year bond yield to rise to 1.5%. Market participants will closely watch for any updates on the macroeconomic forecast provided by the BoJ.

Key events during the Asian session include the monetary policy decision from the Bank of Japan, the New Zealand ANZ Business Confidence report, Australia’s Private Sector Credit, Chinese NBS PMI figures, and Eurostat’s preliminary inflation data for October.

The Bank of England will announce its decision on Thursday, and markets anticipate another dovish hold.

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