Forex Today: Pound Slips as UK Inflation Holds Steady, Metals Plunge
The British Pound weakened in early London trading after inflation data from the UK came in cooler than expected, tempering rate hike expectations.
The UK CPI report showed annual inflation holding at 3.8%, unchanged from the previous reading and below the forecasted 4%, which would have marked a 21-month high. The data triggered an immediate drop in GBP/USD, slipping about 30 pips following the release.
Gold and Silver Face Sharp Selloff
Precious metals endured a brutal session, with Gold tumbling over 6% in its largest one-day fall in more than six years. Silver also declined sharply amid extreme volatility that likely forced many long positions to unwind.
Both metals have since stabilized slightly, though Gold appears to be recovering faster than Silver. Analysts suggest the long-term bullish trend in Gold and Silver may have peaked, while Platinum has found firmer footing.
U.S. Stocks Push Higher on Earnings Strength
Wall Street continues to power higher, led by the NASDAQ 100, now closing in on record highs, and the S&P 500, which is also near peak levels. Around 85% of S&P 500 companies reporting so far have beaten expectations, fueling optimism over corporate earnings.
Adding to market confidence, President Donald Trump reiterated hopes for a U.S.–China trade agreement, though he warned that tariffs of 155% on Chinese imports could be imposed starting November 1 if talks break down.
Currency and Commodity Highlights
The New Zealand Dollar (NZD) outperformed major peers during Asian trading, while the Japanese Yen (JPY) lagged. USD/JPY remains bullish above ¥151.64, a level watched by trend traders as key support.
Meanwhile, WTI Crude Oil advanced after Trump hinted at a potential U.S.–India trade deal, which could shift Indian crude imports away from Russia toward the United States.
Asia-Pacific and Canada Updates
Japan’s new Prime Minister announced plans to maintain a minority government and introduce a large stimulus package aimed at easing inflationary pressures — a move considered bearish for the Yen, though the reaction has been muted.
In Canada, inflation data surprised to the upside, with a 0.1% monthly rise versus expectations for a 0.1% decline, giving the Canadian Dollar (CAD) a temporary boost.