USD holds steady after declines from last week
The US dollar index was seen holding steady after posting steady declines last week. The fresh lows in the US unemployment rate failed to push the dollar index higher. Lack of economic data also kept price action mostly subdued. But investors remain cautious amid a host of headline narratives including the US and China headlines and the economic data.
Eurozone Sentix Investor Confidence Falls
Investor confidence in the Eurozone as measured by Sentix fell to the lowest level since April 2013. The index for October fell to -16.8 comparing to -11.1 in September. The declines come amid fears of a recession despite the ECB measures in relaunching stimulus program. The assessment of the current situation fell to a five-year low of -15.5 comparing to -9.5 a month ago.
EURUSD Holds Steady Above Support
The currency pair was seen holding steady after clearing the support area of 1.0944 last week. Price action opened briefly higher but intraday selling saw prices retreating lower. EURUSD remains somewhat subdued. But given that the support level has been cleared, the bias is to the upside for a test of 1.1033.
EU Likely to Make a Decision on Brexit this Week
French President Macron said that the European Union could decide on Brexit by the end of this week. Reports from news outlets said that the French leader wanted the EU to discuss Brexit swiftly. This comes after Boris Johnson submitted fresh proposals on Brexit late last week.
GBPUSD Caught in the Range
The currency pair is seen trading within the established range of 1.2370–1.2291. It is likely that the currency pair will remain within this range for a while. The Brexit decision announcement from the EU could potentially be a catalyst. The bias remained mixed for the moment. However, there is scope for GBPUSD to decline towards 1.2082 level of support.
Gold Prices Fall as Risk Appetite Improves
The precious metal was seen extending declines, resuming the bearish trend from Friday. Economic data from the US was sparse with most of the trade flows coming in from Friday’s payrolls report. FOMC member, Esther George, in her speech on Monday said that the US economy was in a good place with low inflation and low unemployment. George was one of the dissenters at the September FOMC rate cut.
XAUUSD Likely to Fall Toward 1485
XAUUSD has been trading within the levels of 1508 and 1485. Price opened briefly higher but the precious metal was seen resuming the downside quickly. The current momentum should see gold prices easing to 1485. As long as this support holds, XAUUSD could maintain the sideways range. A close below 1485 will potentially trigger further selling toward the previously established lows of 1462.