The EUR/USD pair climbed to 1.0900 due to a weakening US Dollar following the weaker-than-expected US October Nonfarm Payrolls (NFP) data release. Market sentiment surrounding increased uncertainty ahead of Tuesday's United States (US) presidential election and the upcoming Federal Reserve's (Fed) monetary policy meeting is putting selling pressure on the dollar, pushing it lower. In the Eurozone, the annual core inflation rate held steady at 2.7%, and the Eurozone Harmonised Index of Consumer Prices rose to 2.0%, above the previous 1.7% figure. Eurozone Gross Domestic Product (GDP) grew by 0.4% quarter-over-quarter in Q3, exceeding expectations of 0.2%. Better-than-expected economic growth in the third quarter and higher-than-expected inflation figures are fuelling market speculation around a larger-than-expected interest rate reduction from the European Central Bank (ECB) in December. Apart from US election uncertainty, Tuesday's US ISM Services Purchasing Managers' Index (PMI), along with today's Eurozone Manufacturing PMI and Eurogroup Meetings, will determine the EUR/USD exchange rate.

GBP/USD Buoyed Amid Uncertainty Around the US Election

The GBP/USD pair edges higher near 1.2970, following the softer USD, as weaker US Nonfarm Payrolls (NFP) data continues to add selling pressure on the USD. Additionally, uncertainty around the upcoming election, including Donald Trump's positions on immigration and taxation policies, as well as rising inflationary pressure, will shape market sentiment around the dollar. Market anticipation regarding the Federal Reserve's interest rate decision, due on Friday, also fluctuates the Greenback. On the pound front, lower-than-expected economic data and market anxiety surrounding the Autumn Budget are influencing Sterling prices. On Thursday, the Bank of England (BoE) is expected to announce the highly anticipated interest rate cut. Market sentiment around the US presidential election and interest rate decisions by both central banks will shape the price dynamics for the GBP/USD pair. Investors will monitor Tuesday's UK Final Services PMI and the US ISM Services PMI for fresh direction in GBP/USD's trajectory.

USD/CAD Declines Amid Higher Crude Oil Prices

The USD/CAD pair depreciates to near 1.3900 as the commodity-linked Canadian Dollar (CAD) gains upward momentum following rising crude oil prices. However, expectations of additional interest rate cuts by the Bank of Canada (BoC) continue to weigh on the Canadian Dollar (CAD). On the dollar front, investors are closely monitoring the upcoming US presidential election and Federal Reserve (Fed) policy decision. Friday's labour data showed that the unemployment rate remained steady at 4.1%, while average hourly earnings rose by 4.0%, which was in line with the forecast. In the upcoming week, the USD/CAD exchange rate will be highly influenced by market sentiment around the US election, crude oil prices, and the Canadian economic docket-including the Unemployment Rate and Trade Balance.

AUD/USD Gains as US Presidential Election Looms

The AUD/USD pair rises to near 0.6595, following the softer US Dollar (USD) due to weaker-than-expected US October Nonfarm Payrolls (NFP) data, the upcoming US Federal Reserve's interest rate decision, and uncertainty around the US presidential election. The US labour data showed that NFP in the US increased by only 12,000 in October, while the unemployment rate held steady at 4.1%, as expected. On the Australian front, the TD-MI Inflation Gauge increased by 0.3% month-over-month in October from 0.1%, marking the highest level since July. Meanwhile, the annual gauge rose to 3.0%, compared to the previous 2.6%. In addition to market sentiment around the US election and central bank interest rate decisions, any major changes in the Chinese economy could also shift the AUD/USD price dynamics.

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