The Greenback’s rally showed some signs of potential exhaustion despite positive job creation data in the US private sector and a resilient US economy. On Thursday, October 31, the US Dollar Index (DXY) fell to three-day lows, dropping below the 104.00 support level amid weakness in US yields. Important data releases included the PCE data, Initial Jobless Claims, Personal Income and Spending, Chicago PMI, Challenger Job Cuts, and the Employment Cost Index.
EUR/USD gained strength and approached the critical 200-day SMA near 1.0870 for the third consecutive day. Germany’s Retail Sales and Import Prices data, along with euro area Inflation Rate and Unemployment Rate figures were awaited. GBP/USD faced pressure after two days of gains, with the BoE’s Breeden speech as the only event on the UK economic calendar.
USD/JPY traded cautiously ahead of the BoJ interest rate decision and key US data releases. The BoJ’s decision, Quarterly Outlook Report, and Industrial Production results were the focal points for the pair. AUD/USD reversed three days of losses, nearing the 0.6600 level, with Retail Sales data and other economic indicators on the Australian calendar.
WTI prices rose to weekly highs following a bullish report from the EIA and speculation about a delay in the OPEC+ plan to increase oil output in December. Meanwhile, Gold prices maintained their upward momentum, reaching a record high near $2,800 per ounce troy. Silver prices, however, retreated from Tuesday’s gains and fell below $34.00 per ounce.
In conclusion, the Greenback’s rally showed signs of slowing down, with key economic data releases and central bank decisions impacting major currency pairs. The uncertainty surrounding global economic growth and geopolitical factors continued to influence commodity prices, with oil prices boosted by supply concerns. Investors remained cautious as they awaited further developments in the global economy and central bank policies.
