Forex Today: Focus Turns to US Payrolls and U-Mich Next

With October’s Nonfarm Payrolls release still ahead, the US Dollar (USD) extended Wednesday’s sharp, election-driven retreat with a marginal decline on Thursday. The currency remained under pressure as broader sentiment stayed cautious and markets continued to digest the US midterm election results.

A broad fall in US Treasury yields accompanied choppy trading in the US Dollar Index (DXY), which returned to the 101.70 area. Rounding off the week’s economic calendar will be Nonfarm Payrolls (NFP), the Unemployment Rate and the preliminary U-Mich Consumer Sentiment reading.

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Support around 1.1200 helped EUR/USD recover modestly, leaving the pair slightly higher by the end of the session. The forthcoming releases include Germany’s Industrial Production and the EMU’s Producer Prices.

Trading around 1.3470, GBP/USD moved between gains and losses as it struggled to prolong its run of advances over several days. The UK calendar features the Lloyds House Price Index and the BBA Mortgage Rate.

After retreating on Wednesday, USD/JPY extended its decline and briefly returned to the 157.80 area. Japan’s next releases are Average Cash Earnings, followed by the weekly Foreign Bond Investment figures.

Discouraging remarks from the RBA’s Hauser, alongside widespread caution across global markets, weighed heavily on AUD/USD, sending it to fresh three-week lows around 0.6940. Australia’s next scheduled releases are the final Building Permits and Private House Approvals figures on 9 November.

Persistent uncertainty over the US-Iran-Hormuz situation underpinned a sharp recovery in front-month WTI futures (December contract). After briefly falling towards $86.00 per barrel, prices regained $90.00 and moved above that level.

Against a backdrop of directionless US Dollar trading and falling US Treasury yields across the curve, gold extended the previous day’s gains to trade above $4,100 per troy ounce. Investors also continued to assess the Democrats’ victory in the midterm elections.