Forex Today: Dollar Steady, China Data Confirms Moderate Growth
Currency markets kicked off the week on a calm note Monday as traders digested China’s latest economic data and awaited fresh cues from global policymakers. With no major economic releases scheduled in Europe or the U.S., sentiment was guided by Asian data and improving risk appetite.
China Growth Slows Slightly, Meets Forecasts
China’s third-quarter GDP expanded by 4.8% year-on-year, aligning with market expectations but easing from the 5.2% growth seen in the previous quarter. Retail Sales in September rose 3%, while Industrial Production climbed 6.5%.
The People’s Bank of China (PBoC) maintained its benchmark one-year and five-year Loan Prime Rates at 3.00% and 3.50%, respectively, as widely anticipated.
US Dollar Struggles for Direction
After ending last week higher, the U.S. Dollar Index (DXY) traded flat near 98.50 early Monday, reflecting a cautious tone in markets. U.S. stock futures gained between 0.35% and 0.55%, signaling a modest improvement in risk sentiment.
Over the weekend, U.S. President Donald Trump expressed optimism that China would resume soybean purchases at previous volumes, saying he expects progress in trade negotiations.
US Dollar Performance Snapshot
The U.S. Dollar remained the strongest against the Japanese Yen, while commodity-linked currencies like the New Zealand Dollar saw mild gains.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|
| -0.11% | 0.04% | 0.11% | 0.02% | -0.08% | -0.14% | -0.06% |
(Percent change of each currency pair based on USD as the base currency.)
Gold Pauses Near Record Levels
Gold (XAU/USD) remains steady around $4,250 after a brief correction from last week’s new all-time high of $4,380. Despite Friday’s drop of over 1.5%, the metal gained nearly 6% for the week, underlining ongoing investor interest in safe-haven assets.
Key Pair Updates
- NZD/USD trades above 0.5700 after New Zealand’s Q3 CPI rose 1% quarter-on-quarter, matching analyst expectations.
- GBP/USD hovers near 1.3400 as markets await U.K. inflation data due Wednesday.
- USD/CAD holds steady above 1.4000 ahead of the Bank of Canada’s Business Outlook Survey.
- EUR/USD trades quietly above 1.1650 after snapping a three-day winning streak.
- USD/JPY stays firm above 150.50 following comments from BoJ Board Member Hajime Takata, who noted that Japan’s inflation has surpassed the 2% target for an extended period.