Market Update - 01 November 2023

EUR/GBP extends losses after downbeat Eurozone economic figures. Eurozone HICP (YoY) reduced to 2.9% and GDP (YoY) eased to 0.1%. Pound Sterling could face challenges as BoE is expected to keep interest rates at 5.25%. (FXStreet)

GBP/JPY struggles to capitalize on the previous day’s post-BoJ rally to a seven-week high. Intervention fears prompt some profit-taking ahead of the BoE policy meeting on Thursday. The BoJ’s dovish stance might continue to undermine the JPY and help limit the downside. (FXStreet)

EUR/JPY gains momentum around the 160.00 psychological figure on Wednesday. The verbal intervention from Japan's top currency diplomat Masato Kanda might cap the Japanese Yen’s downside. Eurozone HICP eased to 2.9% YoY in October vs 4.3% prior, the quarterly GDP for Q3 came in at -0.1%. (FXStreet)

USD/CAD continues to gain ground ahead of the FOMC policy decision. Crude oil prices dropped to two-month lows; weakening the Loonie Dollar. Canada’s GDP experienced no growth, remaining flat at 0.0% in August. (FXStreet)

USD/CHF oscillates around the 0.9076-0.9105 region in a narrow trading band ahead of the key event. Federal Open Market Committee (FOMC) will announce its interest rate decision on Wednesday, with no surprise in rate expected. Swiss Real Retail Sales came in at -0.6% YoY in September vs. -2.2%, better than expected. FOMC policy meeting and Swiss National Bank (SNB) Chairman Jordan's speech will be in the spotlight on Wednesday. (FXStreet)

EUR/USD could revisit the previous week's low at 1.0521 due to facing pressure. Any dovish remarks post-Fed decision could uplift the pair toward a 23.6% Fibonacci retracement level at 1.0648. RSI indicates a bias towards a weaker market sentiment. (FXStreet)

USD/JPY strengthened as the BoJ scrapped the 1% ceiling for the 10-year government bond yield. BoJ Governor Ueda expressed fear about inflation not reaching long-term targets. Japan's Chief Cabinet Secretary Matsuno engaged in some verbal intervention to bolster the yen. (FXStreet)

GBP/USD extends its downside around 1.2140 ahead of key events. Federal Open Market Committee (FOMC) is expected to hold the rate unchanged at its November meeting while holding a hawkish stance. Bank of England (BoE) is anticipated to keep rates steady amid the fear of potential recession in the UK. The FOMC and BoE meetings will be in the spotlight ahead of the US Nonfarm Payrolls data. (FXStreet)

NZD/USD extends losses on weaker Kiwi and Chinese economic data. Kiwi Employment Change declined by 0.2% in the third quarter. China's Manufacturing PMI dropped to 49.5 in October. Traders seek Fed's remarks on interest rates trajectory. (FXStreet)

NZD/JPY rose from daily lows of 87.03 to test 88.00, though the rally was halted by the Kijun-Sen at 88.49. On the upside, resistance levels are at 88.00, the Kijun-Sen at 88.49, and the October 11 high at 89.93. Key support levels include the top of the Kumo at 87.82, the bottom of the Kumo at 87.00, and the September 5 swing low at 86.30. (FXStreet)

USD/MXN gains ground despite solid Mexico’s GDP figures. Mexico's economy expanded at 0.9% in the third quarter compared to the 0.8% expected. Positive market sentiment contributes support for the US Dollar ahead of the Fed decision. (FXStreet)

WTI remains depressed for the third straight day and languishes near a two-month low. Receding fears about supply disruptions from the Middle East war weigh on Oil prices. Worries that a slowdown in China will dent fuel demand contribute to the offered tone. (FXStreet)

Gold price drifts lower for the third successive day and refreshes weekly low on Wednesday. Receding safe-haven demand and hawkish Fed expectations continue to weigh on the metal. China’s economic woes lend some support to the safe-haven metal ahead of the Fed decision. (FXStreet)

Silver continues losing ground for the second straight day and drops to a fresh weekly low. The technical setup favours bearish traders and supports prospects for a further downfall. A sustained move beyond the $23.60-70 multiple tops barrier will negate the bearish bias. (FXStreet)

Source: FXStreet, DailyFX

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