Metals plunge as dollar eases again

Wednesday has brought a negative session for metals, which were down notably, despite the US dollar index’s weakness. Gold was 0.5% weaker during the London session, while silver slipped 1%.

On the other hand, the EURUSD pair was up 40 pips to trade at around 1.2130 as the bull market continues uninterrupted. However, US 10-year yields were up strongly today, which might have undermined metals, but has failed to boost the USD.

Later in the day, the JOLTS job openings indicator is expected to fall to 6.3 million in October, from 6.436 million in September.

More importantly, the Bank of Canada is scheduled to decide about monetary policy, with the main interest rate expected to remain at 0.25%. However, the following statement and commentary might sound dovish, which could send the Canadian dollar lower. 

Due to the dollar weakness, the USDCAD pair is trading at around 1.28, which are levels last seen in the summer of 2018. 

From other news, the WTI oil remains above 45 USD, despite OPEC’s announcement to increase production. 

US stocks pushed to new record highs yesterday, with the same pattern expected today.

Source: https://www.axiory.com/market-news/metals-plunge-as-dollar-eases-again