Major currencies tread water ahead of US PMI.

This is what you need to know to trade today Monday, November 1:

The US dollar outperformed its rivals on the last trading day of October and the US dollar DXY index rose to its highest level since mid-October. At the start of the new month, the major currency pairs remain relatively quiet and trading action is likely to remain subdued due to low-volume trading conditions. In the second half of the day, the ISM Manufacturing PMI for October stands out on the US economic calendar.

Wall Street: Democrats in the US House of Representatives want to vote on President Joe Biden’s “Build Back Better” and infrastructure bills Tuesday after adding the latest revisions to the $ 1.75 trillion bill on Sunday. US stock index futures post modest gains at the start of the European session.

The benchmark 10-year US Treasury yield is moving sideways around 1.5%, but investors remain focused on the flattened yield curve. Meanwhile, the yield on German 10-year bonds is approaching positive territory for the first time since May 2019.

Over the weekend, world leaders expressed their commitment to solving problems in global supply chains. “We have to take action now, together with our partners in the private sector, to reduce the arrears that we face,” Biden said at the G20 summit.

The EUR/USD It faced heavy downward pressure in the second half of the day on Friday and erased all the gains it posted after the European Central Bank (ECB) meeting on Thursday. On Monday, the pair continues to move sideways around 1.1550, but remains dangerously close to the 2021 low it set at 1.1524 in early October.

The GBP/USD it is trading at its lowest since mid-October around 1.3660 pressured by renewed Brexit concerns and the general strength of the USD.

The AUD/USD it is moving lower at the beginning of the week, but remains afloat above 0.7500 for the time being. Earlier in the day, data from China showed Caixin’s manufacturing PMI modestly improved to 50.6 in October, beating the market expectation of 50.

The USD/JPY spiked above 114.00 on Friday and retained its bullish momentum on Monday with the dollar strength providing momentum.

The oro It failed to stay above $ 1,800 last week and marked a sharp U-turn on Friday. Currently, the XAU / USD is moving sideways around $ 1,780.

Cryptocurrencies: After rallying above $ 60,000, the Bitcoin it spent the weekend fluctuating in a relatively tight range with the $ 62,000 region acting as short-term resistance. The Ethereum made a technical correction after refreshing all-time highs, but doesn’t appear to be having a hard time staying above $ 4,000.

.

You may also like