Forex Today: More stimulus coming from the ECB, dollar backed by fears and data
Here is what you need to know on Friday, October 30:
The American currency appreciated against most major rivals, finding support in risk aversion and better-than-expected US macroeconomic figures. Initial Jobless Claims improved to 751K in the week ended October 23, while the preliminary estimate of Q3 GDP resulted at 3.7% QoQ. The annualized figure surged to 33.1% from -31.4%.
The upbeat numbers put a halt to stocks’ bleeding, with Wall Street closing in the green, although far from trimming early week losses.
The EUR/USD pair fell to a fresh monthly low of 1.1649, amid a dovish ECB. President Christine Lagarde hinted at December action, saying that all available tools would be “recalibrated,” to counter the negative economic effects of the pandemic. She highlighted the downward risks to the economy and pledged to keep supporting the region throughout the pandemic.
The Sterling Pound also edged sharply lower against the dollar, amid dollar’s strength and no fresh headlines coming from the Brexit front. Talks continue, but authorities said nothing. Meanwhile, the government reiterated that it’s against a total lockdown, despite the UK reported once again over 20K new daily coronavirus cases.
Gold plunged to 1,859.90, bouncing during the US afternoon to settle at around 1,870. The bright metal will likely remain under pressure unless central banks and government announce more fiscal and financial support.
Crude oil prices plunged with WTI trading as low as $34.90 a barrel, weighed by the dismal market mood.
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