Central Bank release and doubts on US-China trade talks push USD lower
Cate Camerota " | October 31, 2019
The US dollar is on pace to fall 2% this month following the FOMC release yesterday and as markets doubt a positive long-term outcome from US-China trade talks. The Fed Reserve cut rates at yesterday’s meeting and the announcement offered the possibility of additional easing but minimized the degree of certainty with subtle changes to the language.
October 31, 2019
EUR/USD 1.1154 GBP/USD 1.2959 USD/CAD 1.3155 AUD/USD 0.6908 USD/JPY 108.22 USD/CNH 7.0416 USD/ILS 3.5278 USD/MXN 19.1176 USD/CHF 0.9871 USD/INR 70.9287
USDThe dollar is trading weaker this morning following concerns regarding trade talks between the US and China and the Fed Reserve rate cut announcement yesterday. The US dollar is on pace for a 2% loss this month.GBPSterling rallies for a second day amidst broad dollar weakness and news that suggests a clearer path for an overall majority for the Conservative party in the general election set for December. Report from the Telegraph suggests that the Brexit party could withdrawal hundreds of election candidates.EUR
EUR/USD has experienced notable gains this week slipping from highs this morning as traders are cautious to keep buying EURs with the lack of domestic support. The pair touched a weekly high of 1.1173 with the main driver being the response to the Fed Reserve’s uncertain tone on the US monetary policy outlook.CAD
Canadian August GDP number was released missing estimates causing the loonie to weaken. The Canadian dollar is near its two-week low as the miss on GDP along with other data releases (Industrial Product Prices and Rate Materials Prices) confirms the cautious stance of the Bank of Canada.ASIA/PACIFIC
The Japanese yen is stronger against the USD following market’s risk-off sentiment. Doubts of a long-term trade deal between the US and China has caused demand for safe-haven assets. The Bank of Japan left its main policy tools unchanged but alluded to the possibility of cutting rates lower in their announcement Thursday.