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Following the bullish activity in forex market witnessed earlier in the week, the US Dollar (USD) lost strength. With the USD Index completing the day nearly flat on Wednesday. Markets remain reasonably quiet early Thursday as attention focuses to the weekly Initial Jobless Claims data from the United States. Later in the American session, Fed Chairman Jerome Powell will speak at an International Monetary Fund (IMF) panel titled ‘Monetary policy problems in a global economy.’ Christine Lagarde, President of the European Central Bank (ECB), is also slated to speak.
On Wednesday, the benchmark 10-year US Treasury bond yield plummeted by more than 1.5%.led the USD to decline. Against its major rivals. Meanwhile, Wall Street’s major indices finished the day nearly unchanged. US market index futures trade neutral in the European morning.
Forex market movement in pairs
Following Wednesday’s erratic trading, the EURUSD appears to have settled just above 1.0700 early Thursday. According to Eurozone data released on Wednesday. Retail sales fell 2.9% year on year in September.
GBPUSD recovered in the second part of the day. Wiping out its daily losses to settle flat and just below 1.2300 on Wednesday. The pair is trading sideways near 1.2300 in the European session on Thursday.
The Bank of Canada observed in the minutes of its October policy meeting that some members thought it was more likely than not that To return inflation to target. The policy rate would need to be raised further. The Canadian Dollar, on the other hand, did not gain from this hawkish statement and continued to fall as crude oil prices fell. The barrel of West Texas Intermediate (WTI) plummeted 2% midweek and sank to its lowest level since July below $76. USDCAD finished in positive territory for the third consecutive day on Wednesday before entering a consolidation period slightly around 1.3800 on Thursday.
On Wednesday, the USDJPY maintained its positive momentum and gained ground. At roughly 151.00 on Thursday, the couple remains quite quiet. In the Summary of Opinions, the Bank of Japan stated that they will “continue with the framework of yield curve control and negative interest rate policy, at least for the time being.” “As long as it is required to maintain the 2% price stability target in a stable manner.”
On Wednesday, gold’s downward reversal gained traction, with XAUUSD falling to its lowest level in nearly three weeks at $1,947. The pair consolidates its weekly losses at about $1,950 in the European morning.
