Shaky but Hopeful USD and GBP Currencies
Published on: 11/1/19 9:28 AM
The last week of October, heading into the first week of November, witnessed an FX market dominated by the gains and losses made by the USD following the release of two key data announcements. The GBP has also been on shaky ground all week as the UK wrangles on about Brexit and uncertainty looms over Boris Johnson’s hold of the PM position. Forex Broker comparison service FXBrokerFeed brings you updates, and opinions in the FX Broker Market, featuring mixed signals by the GBP and USD.
Some Respite for the USD
The USD has been on a bearish trend for the better part of the last three months. It broke away from the trend momentarily this week following the release of the non-farm payroll (NFP) report. The report indicated that the economy created about 128,000 NFP jobs in October, beating expectations of about 89,000 jobs. It also reported a healthy unemployment rate estimated at 3.6%.
The report temporarily changed the dollar’s outlook. The USD
made some gains across the board and appeared to be firmer. Gold prices also dipped slightly. Notably, the U.S. Treasury gained more yields with the 10-year yield going over the set 1.7% mark.
However, the uptick was short-lived as the USD lost all gains made following the release of the ISM Manufacturing PMI figure. The figure fell short by 0.6 points at 48.3 against the expected 48.9. The FOMC’s decision not to adjust interest rates any more going ahead – except in cases of significant inflation – also did not help the situation. The chairman’s decision will force traders to focus deeper on other data, which may increase volatility.
Some Respite for the GBP, Too!
Elsewhere, the GBP is set to close the week on a positive note following months of uncertainty over the Brexit deal. The GBP was bullish against the USD partly because of the positive polls in favor of PM Boris Johnson in the upcoming General Elections
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