FX Update!
As of now, the Euro (EUR) looks weak compared to the US Dollar (USD), which is why early on Monday morning in Europe, EUR/USD traded in a narrow range at the mid-1.0500s.
Meanwhile, the USD Index (DXY) shows that the Greenback is still trading inside the upper bounds of the recent range, close to 106.70. The index has only slightly strengthened thus far, and US rates have been slowly rising throughout a variety of time periods.
In terms of monetary policy, there is increasing agreement among market players that the Federal Reserve (Fed) will stick to its current position of holding interest rates steady at its meeting on November 1. However, there is still a chance that rates may change in December; this belief is supported by the US economy’s resiliency and the country’s persistently high inflation rates.
There were no surprises at the European Central Bank’s (ECB) October 26 event after a unanimous decision to maintain interest rate stability. President Christine Lagarde reaffirmed that more needs to be done to address inflation, even though it is predicted that inflation will be too high for too long.
There is growing pressure on the BoJ to alter its policies. It’s unclear, though, if it will fall in to this pressure this week. The BoJ has demonstrated in the past that it is capable of surprising the markets, but it has also shown that it is extremely difficult for it to abandon its extremely expansionary monetary policy. Monetary policy decision is tomorrow, watch out for major moves during the asian session.
GOLD
Friday saw the gold price (XAU/USD) break beyond the psychological $2,000 threshold, reaching a peak not seen since May 16 and posting a third consecutive weekly increase. Nevertheless, high US Treasury bond rates, supported by the likelihood of additional Fed policy tightening, support the US Dollar (USD) and cause some profit-taking around the non-yielding XAU/USD on the opening day of a new week. The yellow metal hits a new daily low in the last hour, hovering around $1,992, as the corrective slide continues during the opening part of the European day.
WEEKEND CRYPTO
The Astrid Finance exploiter has returned 80% of the money it stole, analysts predict that an authorised spot ETF will be “a bedrock moment for Bitcoin,” and Celsius has released a fresh alert regarding phishing scams. The price of Bitcoin (BTC) has surged 16.5% in the past week to a peak of $34,715 due to rumours that BlackRock’s proposal for a spot Bitcoin ETF is getting closer to approval. The Cantor Fitzgerald analysts observed that in the near run, this kind of acceptance would continue to be the primary driver of Bitcoin’s price movement.
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