Forex Today: US Payrolls and U-Mich Lead the Upcoming Agenda

October’s Nonfarm Payrolls release is in focus. Ahead of the data, the US Dollar (USD) extended Wednesday’s sharp, election-driven retreat with a marginal decline on Thursday. Caution prevailed across markets as investors continued to digest the US midterm election results.

Against a backdrop of broadly lower US Treasury yields, the US Dollar Index (DXY) fluctuated and returned to the 101.70 area. The weekly calendar concludes with Nonfarm Payrolls (NFP), the Unemployment Rate and the preliminary U-Mich Consumer Sentiment reading.

Support around 1.1200 helped EUR/USD stage a modest recovery, leaving the pair slightly higher at the close. Germany’s Industrial Production and the EMU’s Producer Prices are due for release.

Around 1.3470, GBP/USD moved between gains and losses as it struggled to prolong its multi-day winning run. On the UK calendar, the Lloyds House Price Index and BBA Mortgage Rate are scheduled for release.

Extending Wednesday’s pullback, USD/JPY briefly returned to the 157.80 area. Japan’s next releases are Average Cash Earnings, followed by the weekly Foreign Bond Investment figures.

Fresh three-week lows around 0.6940 marked a sharp retreat in AUD/USD, following discouraging remarks from the RBA’s Hauser and broad caution across global markets. Australia’s final Building Permits and Private House Approvals readings are next, on November 9.

After briefly slipping towards $86.00 per barrel, front-month WTI futures (December contract) recovered sharply to regain $90.00 and trade above it. Persistent uncertainty over the US-Iran-Hormuz situation underpinned the rebound.

Above $4,100 per troy ounce, Gold extended the previous day’s gains. The advance came as the US Dollar lacked clear direction, US Treasury yields fell across the curve and investors continued to assess the Democrats’ midterm election victory.