All eyes on the Federal Reserve rate decision today

Key Movers

The Eurozone report showed that the preliminary Harmonized Index of Consumer Prices for October, reduced to 2.9% from 4.3% prior, below the market anticipations of 3.1%. The seasonally adjusted gross domestic product (GDP) data year-over-year came in at 0.1% in Q3 compared to the 0.2% expected. The substantial slowing in consumer prices aligns with the market's anticipation that the European Central Bank (ECB) is unlikely to push for additional interest rate hikes. Furthermore, the scary risks of a recession may continue to undermine the EUR.

In UK news, investors were unsure whether UK Prime Minister Rishi Sunak will fulfill his promise of halving inflation to 5.4% by year-end. Inflation in the UK economy is the highest among all the major economies due to robust wage growth. With constant inflation risks, the Bank of England (BoE) is expected to maintain the status quo as the economy is slowing down due to deteriorating labor demand.

The Reserve Bank of Australia (RBA) prepared to unveil its policy decision on November 7. Anticipations lean towards a 25 basis points (bps) increase in interest rates during the upcoming meeting, driven by heightened inflation.

The USD/CAD pair was up 0.02% this morning, gaining support ahead of the Federal Reserve rate decision. The Bank of Canada (BoC) Governor Tiff Macklem is scheduled to speak with Senior Deputy Governor Carolyn Rogers today. The release of Canada’s GDP data showed that the economy did not experience growth, remaining flat. This contradicted market predictions for a 0.1% growth. In oil news, the tension in the Middle East has raised concerns about potential disruptions in the oil supply. Crude oil prices have sunk to two-month lows putting pressure on the Canadian Dollar. Western Texas Intermediate (WTI) oil trades below $81.00 per barrel.