Market Update - 31 October 2023

EUR/GBP continues the winning streak despite downbeat German Retail Sales. Investors await Eurozone HICP and GDP data to gain economic insights into the Eurozone. BoE is expected to maintain interest rates at 5.25%; weakening the Pound Sterling. (FXStreet)

USD/CHF remains comfortable above 0.9000 as the focus shifts to Fed monetary policy. The market mood remains vulnerable as the Israeli army is all set for a ground assault in Gaza. Investors await the Fed policy and the speech from SNB Jordan. (FXStreet)

USD/JPY rebounded above 150.00 after dovish guidance on interest rates from the BoJ. The Japanese economy is aiming to keep inflation comfortably above 2% through high wage growth. Further action in the US Dollar will be guided by the Fed's monetary policy. (FXStreet)

The index leaves behind two consecutive daily pullbacks. The Fed is seen leaving rates unchanged at its event on November 1. CB Consumer Confidence takes centre stage later in the NA session. The greenback, in terms of the USD Index (DXY), regains some upside impulse and advances to the 106.40 zone ahead of the opening bell in Euroland on Tuesday. (FXStreet)

EUR/USD reverses the recent gains ahead of the Fed policy decision. MACD line lies above the signal line; suggesting a potential shift in momentum. A firm break above the 50-day EMA at 1.0654 could revisit October’s low. (FXStreet)

GBP/JPY gains momentum around 182.15 after the BoJ rate decision. BoJ decided to keep the interest rate and 10-year JGB yield target at -0.1% and 0% respectively. The growing worries about a recession in the UK economy could weigh on the British Pound. Market players await the Bank of England (BoE) rate decision on Thursday. (FXStreet)

EUR/JPY continues to gain ground on the dovish BoJ decision. Japan’s central bank kept its policy rate at -0.1%. Investors await a slew of economic data from the Eurozone to be released on Tuesday. (FXStreet)

USD/CAD could revisit the yearly high on the back of weaker Crude oil prices. The decline in the Chinese PMI index could put pressure on the Oil-linked CAD. BoC Governor Macklem said that higher interest rates and subdued growth will have repercussions on the government's spending. The decline in US Treasury yields undermines the US Dollar. (FXStreet)

NZD/USD retraces recent gains ahead of Fed policy rate decision. China’s NBS PMI data shows a contraction in economic trends; which could affect the Kiwi Dollar. New Zealand Building Permits declined by 4.7% against the previous drop of 0.7%. (FXStreet)

USD/MXN rebounds after a losing streak. MACD line diverges below the signal line, indicating that upward momentum weakens. Support at 23.6% Fibonacci retracement aligned with the 18.0000 key level. (FXStreet)

WTI gains some positive traction on Tuesday and recovers a part of the precious day’s slide. The technical setup favours bearish traders and supports prospects for a further downfall. Any positive move back above the $83.00 mark is likely to get sold into and remain capped. (FXStreet)

Natural gas prices started the week on the back foot and came under pressure following Friday’s nine-month highs. The daily downtick came on the back of rising open interest, which seems to reinforce the idea that a corrective decline appears likely in the very near term. In the meantime, further rebound carries the potential to extend to the next hurdle at the round level of $4.00 per MMBtu. (FXStreet)

Gold price attracts some dip-buying on Tuesday following an intraday slide to the $1,990 region. Hawkish Fed expectations, elevated US bond yields and a modest USD strength could cap gains. Receding safe-haven demand further warrants caution for bulls ahead of the key FOMC decision. (FXStreet)

Silver drifts lower on Tuesday and snaps a two-day winning streak to over a one-week high. The mixed technical setup warrants some caution before placing aggressive directional bets. A sustained strength beyond the $23.60-70 area to support prospects for any further gains. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.