- The US dollar is steady after posting a three-day gain ahead of today’s remarks from the Federal Reserve Chair Jerome Powell at a panel discussion. The focus will be on any comments that can contradict his less hawkish speech last week, which led the dollar to retrace against all its peers. The Dollar Index trades at 105.53 and any rally of the greenback should be short lived as the Fed is likely done with its tightening cycle.
- EUR/USD currently hovers the 1.07 level ahead of ECB’s Lagarde and ECB’s Nagel speech later today. EUR/GBP trades around 0.8715, continuing its three-day gain against the sterling.
- GBP/USD is muted at 1.2284, continuing to trade on yesterday’s range of 1.2250-1.2300.
- China’s October price data showed that the country has gone back into deflation and the PPI posting a significant drop, which adds further pressure on the PBOC to cut interest rates. The CPI declined 0.2% YoY vs. 0% in September. PPI dropped 2.6% YoY, vs. -2.5% in September, adding up to the 14th consecutive month of declines. USD/CNH advanced to trade at 7.2920 and EUR/CNH to trade at 7.8065.
- Brent Crude Oil corrected slightly its price-action this morning, after dipping as much as 7% over the last two trading sessions as the demand outlook worsens.
