Forex News: FOMC’s Impact on Risk Sentiment in the 1st Week of November 2023

In the fast-paced realm of forex trading, staying ahead of the curve is not just an advantage; it’s a necessity. Forex news serves as the heartbeat of global markets, offering crucial insights into economic events, political decisions, and social developments that can sway currencies in a blink.

According to Daily Forex, here are a few insights and potential trends to keep an eye on in the forex market. 

FOMC’s Impact on Risk Sentiment

Last week, a notable shift in risk sentiment occurred, primarily due to the FOMC’s statement, indicating no further rate hikes in 2023. Additionally, the stable situation in the Middle East contributed to positive market sentiment. Following the Fed’s announcement, the US Dollar significantly declined against major currencies, while stock markets experienced substantial gains. Several key US indices reached a new two-year high. US Treasury Yields also dropped significantly, raising speculation about a significant market reversal. As anticipated, the Fed kept its rate unchanged at 5.50%, aligning with the market’s 97% probability prediction.

US Economic Data Surprises

The previous week saw a flurry of significant data releases, notably the US non-farm payrolls report which fell below expectations. Surprisingly, the unemployment rate slightly increased, and hourly earnings grew slower than predicted. This unexpected data aligns with the Fed’s decision to pause rate hikes and curiously might be boosting US stock markets.

Bank of Japan’s Surprise Move Impacts on Yen

Last week, significant events included policy meetings at the Bank of Japan and the Bank of England. The Bank of England’s decisions were as anticipated, causing no major market shifts. However, the Bank of Japan made a less substantial adjustment than expected to its yield curve control, leading to a temporary decline in the Yen.

Last Week’s Data Releases

  • US JOLTS Job Openings: More job opportunities in the US than predicted, suggesting a robust job market.
  • German CPI (Inflation): Inflation in Germany stayed at zero, lower than expected, indicating easing inflation pressures.
  • Swiss CPI: Switzerland’s inflation remained very low, as anticipated.
  • Spanish CPI: Spain’s inflation was significantly lower than expected, indicating reduced inflation pressures.
  • Chinese Manufacturing PMI: Slightly lower than expected, pointing to potential manufacturing slowdown in China.
  • Canadian GDP: Slightly lower than expected, reflecting stagnant economic growth in Canada.
  • US ISM Services PMI: Lower than expected, indicating a cooling US service sector.
  • US Employment Cost Index: In line with expectation.
  • US Consumer Confidence: Slightly higher than expected, reflecting optimism among US consumers.
  • US Manufacturing PMI: Lower than anticipated, indicating challenges in the US manufacturing sector.
  • US Unemployment Claims: Stable as expected, signifying a steady job market.
  • Canadian Unemployment: Worse than expected, showing a rise in Canada’s unemployment rate to 5.7%.
  • New Zealand Unemployment Rate: Met expectations, indicating stability in New Zealand’s job market.


The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell, or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision.

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