Forex Today: Fear will continue to be the main market motor

FX

Here is what you need to know on Monday, November 2:

 The greenback finished October with gains against most major rivals, backed by a sour market’s sentiment. Concerns related to the number of new coronavirus cases in Europe and the US, alongside uncertainty about the US presidential election, were behind the dismal mood.

The EUR/USD pair closed the week at November lows at 1.1640, as the ECB anticipated more stimulus coming in December, forecasting another economic setback in the last quarter of the year, as restrictive measures were announced in France, Germany, Spain and Italy, in an attempt to curb contagions.

The GBP held above 1.29 against the American currency but may start the week gapping lower, as UK Prime Minister Boris Johnson announced a nationwide one-month lockdown on Saturday, starting on November 2.

The Japanese yen strengthened against the greenback due to its safe-haven condition, given up some gains at the end of the week amid resurgent government bond yields. The yield on the benchmark 10-year Treasury note finished the week at 0.87%.

Equities remained under pressure, with Wall Street closing in the red on Friday. US indexes have their worst weekly performance since March.

Commodities also edged lower. Gold settled at $1,878 a troy ounce, while WTI finished at $35.70 a barrel.

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