On November 8th, The US Dollar Index, an index that measures the value of the dollar against a basket of foreign currencies, declined from the 2021-high of 94.62 on Friday. This index remained in positive territory for the second consecutive week, mainly supported by the upbeat jobs report in October.
The markets started the new week in a relatively quiet manner. Investors are observing the market closely expecting that the central bank speakers on Monday would disrupt their silence.
Jerome Powell, the FOMC Chairman is delivering the opening remarks at the Gender and the Economy Conference, ‘a virtual conference scheduled for November 8th.
John Williams, the New York Federal Reserve President, Richard Clarida, the Fed Vice Chair, Bowman, the Fed Governor and, Andrew Bailey, the Bank of England Governor are among the speakers at the conference.
Reported data on this week’s movements
According to the US Bureau of Labor Statistics’ announcement on Friday, the Nonfarm Payrolls, have increased by 531,000 in October. This is while the market expectation for NFP was near 425,000. Wall Street’s main indexes reached a new all-time high at the end of the week.
Meanwhile, the US stock index futures declined between 0.15% and 0.35% in the early European session on Monday. The 10-year US Treasury bond yield, which had lost around 10% in the second half of the week, is trying to stage a rebound toward 1.5%. The US Democrats rose above the $1 trillion infrastructure bill on Friday
The EUR/USD pair is recovering from dropping toward 1.1500 on Thursday and is now slightly above mid-1.1500s.
GBP/USD pair suffered heavily from the losses last week. The BoE’s decision to leave its policy rate unchanged was the main reason for these losses. Governor Bailey has stated that they are not in a position to guide financial markets based on interest rates. The investors are now observing the headlined for Brexit talks.
USD/JPY pair fell lower while the US T-bond yields were falling in the second half of the previous week. This pair is now relatively stable around mid-113.00s.
According to the Bank of Japan’s, ‘Summary of Opinions’ of its October policy meeting, the differential in inflation, monetary policy stance between Japan and other countries lead to the recent JPY weakness was a reflection of the
Gold broke above several key resistance levels and end the week at its strongest level since early September at roughly $1,820, while the US T-bond yields were falling. The XAU/USD pair is extending its rally as a bullish shift soon is estimated by technical indicators.
Cryptocurrencies: passing the $60,000 level, Bitcoin regained its strength and rose above $65,000. Ethereum continues its bullish momentum and moved above $4,700.