Nov. 4: Asian session
The currency markets opened the week in a quite mode with the US dollar index holding at a six-week high of 80.7320. The greenback remains supported as the Friday's upbeat US manufacturing PMI raised speculation the Fed might taper QE in December. This week the market focus will be on the RBA, ECB and BOE meetings and the US GDP employment data.
EUR/USD made a quick dip to $1.3440 before recovering into the $1.3490 area. Euro remain under pressure on the back of the speculation the ECB would have to ease policy again on Thursday given disappointing news on unemployment and a lower inflation. Watch the Spanich and Italian manufacturing PMIs today (forecasts - upbeat). GBP/USD has tested the $1.5900 mark, but bounced back to the levels around $1.5930. The BOE is expected to stay on hold given the improving economic situation.UK will release construction PMI at 9:30 GMT.
AUD/USD opened the week with a bullish gap at $0.9440 on Sunday's strong China PMI and jumped to $0.9490. Upbeat Australian Retail sales added to market optimism. NZD/USD rose to $0.8270. USD/JPY is consolidating in a tight $0.9880/60 range.