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EURUSD Pair Improving as Forex Markets Head Into a New Month

dollar and euro notesThe first day of trading in the month of November saw good news for a number of major global currencies.

The euro was one of the day’s main victors. It rose to $1.1389 against the US dollar, which is a boost from the $1.1302 lows seen recently.

Thursday’s rise was a welcome development for the currency, which has recently been contending with everything from Italy’s refusal to budge on its spending and borrowing plans to the ongoing battle over Brexit.

However, this latter issue had some of the heat taken out of it during Thursday’s trading action.

It is now believed that a deal between the bloc and Britain on the specific issue of financial services is increasingly likely to go ahead. As a result, the pound sterling rose by over 1%.

The dollar index, a tool used to assess how the greenback is performing compared to a number of other major international currencies, dropped by half a percentage point to 96.642. However, this is unlikely to be seen as particularly worrying by the markets given that the dollar index has recently seen some of its highest points in a double-figure number of months.

The overall global shift slightly away from the US dollar was confirmed by moves in the Australian dollar’s value. It went up 1% to $0.7146.

With a new week on the horizon, it’s time to start looking at what events might be likely to affect the foreign exchange markets in the coming days.

Monday of next week will see a variety of US data points released. The Markit services PMI (purchasing managers’ index) for October will be out at 2.45pm GMT, while the ISM’s non-manufacturing PMI data for the same month will follow at 3pm GMT.

On Tuesday, the US markets may experience some instability due to the mid-term elections, in which the Democrats and the Republicans will go head to head for control of the House of Representatives and the Senate.

At 3.30am GMT on Tuesday, the Reserve Bank of Australia will go ahead with its interest rate decision. This is expected by analysts to hold firm at 1.5%.

Later in the day will be a series of Markit PMIs for a host of European nations, including Italy, France and Germany between 8am GMT and 9am.

New Zealand employment change data for the third quarter of the year will come out at 9.45pm GMT, and this is expected to show a decline from 0.5% to 0.4%.

Looking at Wednesday, there’ll be another significant Asia-Pacific interest rate decision when the Reserve Bank of New Zealand releases its choice at 8pm GMT.

Analysts are currently uncertain whether or not the Bank is likely to alter its current rate of 1.75%.

On Thursday, the US Federal Reserve also has an interest rate decision scheduled. Analysts are again unclear what changes to the 2.25% rate to expect when the announcement is revealed at 7pm GMT.

On Friday, Britain’s gross domestic product information for September will be out at 9.30am GMT.

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