Live Commentary

EUR/USD faces pressure near 1.0600 as ECB policymakers seem more worried about the economic outlook than about controlling inflation. ECB’s Panetta emphasized an expansionary monetary policy stance to prevent inflation from remaining well below the bank’s target. Deutsche Bank sees the Fed cutting interest rates in December but expects it to be a close call.

AUD/USD posts a fresh three-month low near 0.6460 as the US Dollar continues to move higher. Trump’s clean sweep will allow him to implement policies without interruption. RBA Bullock favored keeping interest rates at their current levels as inflation is still not under control.

USD/CAD continues to gain ground as Trump’s potential fiscal policies could delay further rate cuts by the Fed. The commodity-linked CAD struggles as crude Oil prices extend their losing streak. Oil prices decline as proposed tariffs from Trump could dampen demand growth in China.

The Pound Sterling declines against US Dollar as investors await the UK Employment data for the three months ending September. The UK Unemployment Rate is estimated to have increased to 4.1%. The US Dollar will be influenced by the US inflation data for October.

AUD/USD meets with a fresh supply on Friday amid the emergence of some USD dip-buying. The overnight failure near the 100-day SMA and the technical setup favors bearish traders. A sustained strength and acceptance above the 0.6700 mark will negate the negative bias.

Former president Donald Trump has been elected as the new president of the United States, according to the Associated Press. Trump has secured more than 270 electoral votes after winning in key swing states such as Pennsylvania and Wisconsin. Trump's victory favors the so-called Trump trades, with the US Dollar and Bitcoin soaring.

The Pound Sterling moves higher against the US Dollar with US elections getting underway. Investors expect the Fed and the BoE to cut interest rates by 25 bps on Thursday. Market participants still assess the impact of the UK budget announcements on the country’s inflation outlook.

USD/CAD rebounds from 1.3900 as the Canadian Dollar weakens on expectations that the BoC will deliver another 50-bps interest rate cut. The likelihood of tough competition between Kamala Harris and Donald Trump for presidential elections has weighed on the US Dollar. The Fed is expected to cut interest rates by 25 bps on Thursday.

Gold plummets after topping at a new record high of $2,790 on Thursday. The yellow metal sees downside pressure from rising US Treasury bond yields following stronger US employment data. Hopes of a Middle East ceasefire and the probability of a Trump victory are also weighing on Gold.

EUR/USD rises moderately above 1.0800 as investors await an array of macroeconomic data from the US and the Eurozone this week. US JOLTS Job Openings are estimated to have declined marginally in September. Traders doubt over the size of the ECB’s likely interest rate cut in December.