On Wednesday, October 30, the foreign exchange markets are experiencing subdued activity as investors prepare for significant macroeconomic data releases. Key reports on inflation and Gross Domestic Product (GDP) are set to be published for Spain, Italy, and Germany, along with GDP figures for the Eurozone. In the U.S., traders will closely monitor the ADP Employment Change data and the first estimate of annualized GDP growth for the third quarter from the Bureau of Economic Analysis.
U.S. Dollar Movement
The U.S. Dollar (USD) Index saw a slight rise during European trading hours on Tuesday but lost momentum due to disappointing JOLTS Job Openings data for September. The index closed the day nearly unchanged and is currently moving sideways above the 104.00 level. Meanwhile, U.S. stock index futures are trading slightly higher following mixed results on Wall Street on Tuesday. The upcoming U.S. GDP report will also include quarterly readings for the Personal Consumption Expenditures (PCE) Price Index.
Currency Pair Updates
EUR/USD
The EUR/USD pair dipped below 1.0800 on Tuesday but rebounded during the American session, ending the day flat. As European trading begins, the pair remains steady around 1.0820. Additionally, the European Commission is expected to release business and consumer sentiment figures for October.
GBP/USD
The GBP/USD pair registered modest gains, closing above 1.3000 on Tuesday. It is currently in a consolidation phase as the UK government prepares to release the Autumn Forecast Statement and unveil the Autumn Budget later today.
AUD/USD
In Australia, the Consumer Price Index (CPI) rose by 0.2% on a quarterly basis in the third quarter, slightly below the expected 0.3%. Year-on-year, the CPI increased by 2.8%, compared to the forecast of 2.9%. As a result, AUD/USD is experiencing modest bearish pressure, trading near 0.6550 in the European morning.
USD/JPY
The USD/JPY pair did not gain any directional momentum, closing flat on Tuesday. Early Wednesday, the pair remains relatively quiet, fluctuating in a narrow band above the 153.00 level.
Gold Market Performance
Gold prices have shown bullish momentum, gaining over 1% on Tuesday. The XAU/USD continues to rise, approaching $2,800 and trading at a new record high on Wednesday.
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