November 02, 2021
USD/CAD: USD/CAD is attempting to recover around 1.2375 during a quiet Asian session. The loonie bulls broadly gained from the US dollar weakness before it started fading. Considering the cautious mood in the market ahead of the RBA, Fed and the Bank of England meetings, USD/CAD traders may pay their attention to Canada’s main export item which is WTI crude oil for fresh impulse. The black gold recently showed a bearish dynamic to 83 USD due to monetary policy decisions and the OPEC+ verdict. In the short term, weekly inventory data from the American Petroleum Institute will affect both oil and CAD prices.
EUR/CHF: USD/CHF slid to fresh three-month lows, down 0.70%, trading at 0.9105 during the Asian session at the time of writing. Risk-off market sentiment has kept the USD weaker against all majors, except for risk-sensitive currencies, like the AUD and the GBP while EUR/CHF refreshed 18-month lows when it briefly slipped below the 1.0550 level in earlier trade. Bearish momentum has gathered pace since EUR/CHF saw a significant 1.07 support breakout and then failed to return above this level to retest it. Recent strength in the Swiss franc surprised many traders and analysts, given that it seems not to reflect recent fundamental events.
Gold: Gold is still trading near the $1800 level despite yesterday’s rebound. The yellow metal used the market mood changes and softer US dollar to recover from Friday’s losses the previous day. However, cautious sentiment during the key central bank meetings seems to challenge the metal’s immediate moves. Following that, comments from Janet Yellen added to the market’s mild risk-on mood. The former Fed Chair Yellen hinted that the US-China phase one trade deal and tariffs easing may limit inflation rates. The same factors highlight optimism about reaching the long-awaited trade agreement between the world’s top two economies.