Gold Prices Managed To Rise Along With Investors Seeking The Safe Haven Of The Yen

My FX Forum

Staff member
The U.S. dollar maintained its dominance on Tuesday, but price action was seen easing slightly following the gains. On the economic front, data was relatively quiet. The rising global tensions saw the markets having a lower risk appetite. Gold prices managed to rise along with investors seeking the safe haven of the yen.

The euro currency fell to an intraday low before recovering. Data showed that the Eurozone’s consumer confidence improved slightly to -2.7 from -2.9 previously. The European Commission was also seen rejecting Italy’s budget but the Italian Prime Minister, Giuseppe Conte remarked that there was no Plan B for its budget.

The British pound was seen trading volatile on the day after news reports suggested that the EU could offer the UK a customs union.

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The economic data picks up steam with today’s European session marking the release of the flash manufacturing and services PMI data. The Eurozone’s flash manufacturing PMI is expected to ease slightly to 53.1 from 53.2 in September while services PMI is forecast to fall back to 54.5 from 54.7 previously.

The NY trading session will see the release of the Bank of Canada’s monetary policy statement and interest rate decision. The BoC is widely expected to hike rates by 25 basis points at today’s meeting. This would bring the interest rates to 1.75%.

Later in the day, the U.S. new home sales data will be coming out. Economists polled expect new home sales to rise slightly to 630k from 629k the month before. Fed members, Bostic and Mester, are due to speak later in the evening.