investingLive European FX news wrap: The risk sentiment remains cautious

• Yen has room to drop further but intervention risks cap USD/JPY upside – Goldman Sachs
• US initial claims 232K and continuing claims 1957K in the week ending October 18
• European indices see red at the open as risk stays pressured
• BofA FMS: AI bubble biggest tail risk for 45% of respondents
• Gold clips the $4,000 mark then quickly bounces
• Takaichi’s remarks on Taiwan are in line with our long standing views, says Kihara
• BOJ governor Ueda says no request from Takaichi on policy
• BOJ governor Ueda says talked about economy, monetary policy with Takaichi
• FX option expiries for 18 November 10am New York cut
• Gold stumbles further towards $4,000 mark on the week
• Risk stays under pressure as we look towards European trading later
• Cloudflare shares drop more than 3% in pre-market due to global outage

It’s been a pretty boring session in terms of data releases and general newsflow. The only notable news was the release of the US jobless claims data in the week ending October 18. That’s of course old news, but it showed that the conditions didn’t change much with the low firing-low hiring environment. On Thursday we should get the most recent data.

In the markets, we are basically just ranging across the board, although the risk sentiment remains cautious with US equity futures pointing to a negative open at the moment. The key risk events this week include Nvidia earnings tomorrow, and the September NFP and weekly jobless claims on Thursday.

In the American session, the main highlight is
the weekly US ADP jobs data. Last week, we got a soft number at -11,250
in the week ending October 25. That moved the market a bit, especially
in FX where the US dollar weakened across the board but eventually
recovered all the losses.

This data is
released with a two-week lag, so it’s still covers October. The market
might care more about the last two weekly ADP data in the month as they
start to cover November too. Not sure, but it makes sense to me.

Other
than that, we have the US NHAB Housing Market Index which hasn’t been a
market-moving report for a very long time as the market is focused on
jobs and the Fed rate cuts right now.

This article was written by Giuseppe Dellamotta at investinglive.com.