A fresh trading week is ahead of us, as we start November on the back end of Wall-Street's best month in 4 years, pushed by strong earnings reports, by ECB chairman Draghi's remarks of a possible extension to the bank's bond-buying program, and hints from the Fed regarding a possible December interest rate hike.
The Fed's monetary announcement struck well with the USD as well, as the greenback notched its biggest rally in quite a while, with its index trading close to 97$. The EUR/USD dropped to its lowest point since early August, briefly touching 1.09, before correcting back above 1.10. The Dollar's tail-wind was tempered by some mixed US macro data, including a 1.5% GDP reading for the year's 3rd quarter, slightly below the projected 1.6%. This Friday's NFP release is likely to have a large effect on the Greenback, as it was made clear by the Fed that positive Job market data is crucial for a future rate hike.
Gold prices are on a bit of a slope, reaching a 4 week low around 1140$, after reaching a 4 month peak above 1180$, prices will likely derive from the USD's direction, as Gold is traditionally considered a safe haven when the Dollar is weak, and enjoyed the Greenback's weakness in the last couple of months.
Key Market data this week:
Monday – November 2nd:
09:30 – GBP: Manufacturing PMI.
15:00 – USD: Manufacturing PMI.
Tuesday – November 3rd:
03:30 – AUD: Interest Rate Decision.
09:30 – GBP: Construction PMI.
21:45 – NZD: Employment Change.
Wednesday – November 4th:
00:30 – AUD: Retail Sales.
09:00 - EUR: Service PMI
13:15 – USD: ADP Non-Farm Employment Change.
15:00 – USD: ISM Non-Manufacturing PMI
Thursday – November 5th:
12:00 – GBP: Interest Rate Decision.
15:00 – CAD: Ivey PMI.
Friday – November 6th:
13:30 – USD: Non-Farm Payrolls.