Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
UK pound edges up on hopes for Brexit deal
On Tuesday, the Japanese yen went down on news that a Japanese chip manufacturer was purchasing an American rival for about $6.7 billion. Meanwhile, the UK pound held onto overnight profits right after the EU’s key negotiator backed expectations that a Brexit deal can be reached in the nearer weeks.
Eventually, most other key currencies were in tight ranges because market participants waited for further developments in international trade clashes, in particular on any American move to impose fresh levies on China in the face of heightened tension between the two leading economies.
On Tuesday, the UK currency jumped by 0.1% hitting $1.3041.
Market experts stress that if the talks for Brexit conclude on a positive note, it will definitely underpin the British pound.
The common currency was nearly intact, sticking with $1.1601. It rallied nearly 0.4% during the previous trading session, backed by an easing in worries over Italian debt.
Versus the UK currency, the euro hit 88.94 pence, having dived to a fresh one-month minimum of 88.91.
Policymakers at the BoE as well as ECB are generally anticipated to leave their policy settings intact at their respective gatherings on Thursday.
Tracking the greenback’s purchasing potential versus its primary counterparts the USD index stood still at 95.140, having lost 0.2% overnight.
News that Japan’s chip manufacturer Renesas was purchasing its American rival Integrated Device Technology for up to $6.7 billion put pressure on the Japanese yen.
The evergreen buck jumped by 0.3% hitting 111.41 yen due to the fact that market participants also cut some of their safe-haven holdings of the Japanese yen because the benchmark Nikkei 225 stock index tacked on by over 1% and also on expectations for a Brexit deal.
Additionally, the Australian dollar soared by 0.15% reaching $0.7123.
Similar
The Fed won't miss these releases!
Here you'll find what awaits the market this week, from the CPI release to a possible gold plunge.
USD and GBP Traders Await Big Moves
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Latest news
The US Dollar Is Correcting
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?
Bearish Signal For The USD
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!
Current Risks for Developed Economies
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
