During the Asian session, the Bank of Japan will release the Summary of Opinions. A critical report will be China’s inflation figures, which can impact market sentiment. Later in the day, the weekly US Jobless Claims report is due.
Here is what you need to know on Thursday, November 9:
The US Dollar posted mixed results on Wednesday, gaining against the Euro and Pound but strengthening versus riskier currencies. The US Dollar index (DXY) peaked at 105.80 before retracing its gains, falling to 105.55.
With no significant economic reports, the Treasury market had a quiet session. The 10-year Treasury yield dropped to 4.50%. Wall Street ended the day with little change after main indexes reached fresh weekly highs.
The weekly Jobless Claims report is due on Thursday. Later in the day, Federal Reserve (Fed) Chair Jerome Powell will participate in a panel discussion titled “Monetary Challenges in a Global Economy.” It is unclear at this point if Powell will provide any new insights. The next key report in the US will be the Consumer Price Index on November 14.
China will release the Consumer Price Index and Producer Price Index for October on Thursday. These figures will be closely watched.
EUR/USD posted modest gains after rebounding from the 55-day Simple Moving Average (SMA) around the 1.0700 area during the American session. The European Central Bank (ECB) will release its economic bulletin.
GBP/USD hit three-day lows but then trimmed losses, rising to 1.2300. The Pound also lost ground against the Euro, with EUR/GBP rising above 0.8700. UK growth data is due on Friday.
USD/JPY rose for the third consecutive day, climbing to 151.00, despite the decline in government bond yields and the mixed tone in Wall Street. On Thursday, the Bank of Japan (BoJ) will release the Summary of Opinions from the Monetary Policy Meeting held on October 30-31.
USD/CAD climbed for the third consecutive day, testing levels above 1.3800, driven by a stronger US Dollar and lower crude oil prices, which dropped more than 2%. WTI crude fell to $75.50, the lowest level since July.
Antipodean currencies slid during the American session, with AUD/USD dropping to test 0.6400 and NZD/USD approaching 0.5900.
Gold remains under pressure, trading below $1,950 and below the 20-day Simple Moving Average, reaching its lowest level since October 19. The yellow metal failed to benefit from the decline in Treasury yields. Silver ended the day flat at $22.50 after being dragged down by the slide in Gold.