Forex Today: Dollar Steady, China GDP Meets Forecast
Forex Today: Dollar Steadies as Risk Sentiment Improves; Focus on China Data
Major currencies opened the week on a steady note Monday as market volatility eased following last week’s sharp swings. With no major economic releases scheduled, traders are turning their attention to developments surrounding U.S.–China trade relations and fresh macro data from Asia.
China Growth Matches Expectations
During Asian trading hours, China reported that its Gross Domestic Product (GDP) expanded 4.8% year-on-year in the third quarter, matching forecasts but slowing from 5.2% in the previous quarter. Retail Sales climbed 3% annually in September, while Industrial Production rose a solid 6.5%. The People’s Bank of China (PBoC) kept its one-year and five-year Loan Prime Rates unchanged at 3.00% and 3.50%, respectively — in line with expectations.
US Dollar Lacks Momentum
After recovering on Friday from a three-day slide, the U.S. Dollar Index (DXY) trades sideways near 98.50 in early European hours. The greenback’s performance remains muted despite an improved risk mood, as U.S. stock futures advance between 0.35% and 0.55%.
U.S. President Donald Trump reiterated optimism over renewed soybean trade purchases from China, saying he expects Beijing to resume imports at pre-trade-war levels.
Currency Performance Snapshot
The U.S. Dollar was strongest against the Japanese Yen on Monday, while commodity-linked currencies like the New Zealand Dollar outperformed.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|
| -0.11% | 0.04% | 0.11% | 0.02% | -0.08% | -0.14% | -0.06% |
(Values represent percentage change of the base currency against others.)
Gold Holds Above $4,250 After Pullback
Gold (XAU/USD) is consolidating near $4,250 after Friday’s brief correction from a new all-time high at $4,380. Despite the dip, the metal ended last week up nearly 6%, as investors remain cautious amid mixed global growth signals.
NZD, GBP, and CAD Update
- NZD/USD holds above 0.5700 after New Zealand’s Q3 CPI rose 1% quarter-on-quarter, matching expectations.
- GBP/USD trades steady above 1.3400 ahead of the U.K.’s September CPI data due Wednesday.
- USD/CAD stays near 1.4000, with markets awaiting the Bank of Canada’s Business Outlook Survey later in the day.
USD/JPY Remains Firm
In Japan, Bank of Japan Board Member Hajime Takata noted that inflation has stayed above the 2% target “for some time,” suggesting the BoJ may consider policy adjustments ahead. USD/JPY continues to trade firmly above 150.50.
