Forex Today: Cautious start to the week as investors gear up for key data releases
Financial markets started the new week in a calm manner, with investors refraining from taking large positions ahead of Tuesday's key macroeconomic data releases. After closing the previous week in positive territory, the US Dollar (USD) Index holds steady slightly below 106.00 on Monday and major currency pairs fluctuate in familiar ranges.
US Dollar price today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Australian Dollar.
The UK's Office for National Statistics will release the jobs report in the early European morning on Tuesday. Later in the session, third-quarter Gross Domestic Product (GDP) growth data from the Euro area and October Consumer Price Index (CPI) data from the US will be watched closely by market participants.
Following Friday's indecisive action, EUR/USD registered small losses in the previous week. Early Monday, the pair moves up and down in a narrow band at around 1.0700. Commenting on the policy outlook, European Central Bank (ECB) Vice President Luis de Guindos said on Monday that it is likely that the euro area economy will remain subdued in the short term.
British Prime Minister Rishi Sunak began reshuffling his cabinet on Monday after sacking home secretary Suella Braverman. According to the latest developments, David Cameron will be offered a role by Sunak. The UK's FTSE 100 Index opened higher on Monday and was last seen rising more than 0.7% on the day. Meanwhile, GBP/USD edged higher to the 1.2250 area on improving risk mood.
USD/JPY climbed to its highest level since October 2022 near 152.00 before staging a correction. Japanese Finance Minister Sunichi Suzuki intervened verbally and repeated that sudden forex moves are undesirable and currency rates should be set by markets to reflect fundamentals.
Gold suffered large losses on Thursday and continued to stretch lower on Friday, losing more than 2.5% on a weekly basis. Early Monday, XAU/USD consolidates its losses at around $1,940.