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

Caution has continued to weigh on the US Dollar (USD), which edged lower on Thursday after Wednesday’s sharp election-driven retreat. The bearish tone has persisted as markets digest the US midterm election results ahead of October’s Nonfarm Payrolls release.

Against a backdrop of broadly falling US Treasury yields, the US Dollar Index (DXY) has fluctuated, returning to the 101.70 region. Rounding off the week’s economic calendar are Nonfarm Payrolls (NFP), the Unemployment Rate and the preliminary U-Mich Consumer Sentiment reading.

Support around 1.1200 has helped EUR/USD stage a mild recovery and finish the day with a small gain. Germany’s Industrial Production figures and the EMU’s Producer Prices are due next.

Around 1.3470, GBP/USD has moved between gains and losses as it struggles to prolong its multi-day winning run. The UK calendar will bring the Lloyds House Price Index and the BBA Mortgage Rate.

Extending Wednesday’s decline, USD/JPY has briefly returned to the 157.80 area. Japan’s upcoming releases comprise Average Cash Earnings, followed by the weekly Foreign Bond Investment data.

Discouraging remarks from the RBA’s Hauser, alongside broad caution across global markets, have driven AUD/USD sharply lower to fresh three-week lows around 0.6940. Australia’s next releases, scheduled for November 9, are the final readings for Building Permits and Private House Approvals.

Persistent uncertainty over the US-Iran-Hormuz situation has accompanied a strong recovery in front-month WTI futures (December contract). After briefly slipping towards $86.00 per barrel, prices have regained $90.00 and moved higher.

With the US Dollar lacking a clear direction and US Treasury yields declining across the curve, Gold has extended the previous day’s rise to move above $4,100 per troy ounce. Investors have also continued to assess the Democrats’ victory in the midterm elections.