Here’s what you should know about Forex Market.
Early Friday, Forex markets are relatively quiet as investors examine the recent macroeconomic events while keeping an eye on developments in the Israel-Hamas conflict. The US Bureau of Economic Analysis (BEA) will release the Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve’s favored gauge of inflation, in the second half of the day. The final reading of the University of Michigan’s Consumer Confidence Index for October will also be included on the US economic calendar.
According to the BEA, the US economy expanded at a 4.9% annual rate in the third quarter. This reading exceeded the market’s forecast for a 4.2% increase helped the US Dollar (USD) maintain its competitiveness. Meanwhile, the 10-year US Treasury bond yield fell more than 2% on the day, limiting the currency’s gains. The USD Index consolidates its weekly gains above 106.50 early Friday, while the 10-year yield fluctuates below 4.9%. Meanwhile, US stock index futures are up 0.3% to 0.9% in the early European session, indicating a rising risk sentiment on the week’s last trading day.
According to the most recent sources, Israeli ground forces conducted a significant operation attacking Hamas strongholds in Gaza on Thursday. Meanwhile, the world community is asking Israel to declare a temporary cease-fire to allow humanitarian relief to reach the country. the region.
Following its October policy meeting, the European Central Bank (ECB) maintained key interest rates unchanged, as expected. During the press conference, President Christine Lagarde stated that it was premature to discuss rate reduction and that the choice to maintain the current policy did not necessarily imply that they would not hike again in the future. With the immediate reaction, EURUSD in Forex market fell toward 1.0500 but managed to retrace its losses. Early Friday, the pair is trading just around 1.0550.
Market Movement in pairs
GBPUSD failed to make a dramatic move in either direction on Thursday, ending the day relatively unchanged. The pair goes up and down in a narrow zone above 1.2100 in the European morning.
Following Thursday’s turbulent trading, the USDJPY pair in Forex market has stabilized above 150.00. This Friday. Japanese Finance Minister Shunichi Suzuki declined to disclose whether the Bank of Japan participated in the currency market, but he did remark that excessive FX volatility is undesirable and that policymakers will take comprehensive FX steps with speed.
Gold prices rose further on Thursday as US Treasury note yields fell. XAUUSD is trading slightly higher on the day at roughly $1,990 as of early Friday.
