Nasdaq 100's worst day since 2020 lifts the yen; BoE hikes to 4.00%

A sell-off in US technology shares sent traders into the yen, FXStreet said, and AUD/USD fell 1.07% to 0.69299 on our feed, the dollar's biggest move. The Bank of England raised its rate to 4.00%, as expected, and the pound still slipped.

The tech rout lifted the yen and sank the Aussie

• The Nasdaq 100 fell 6.36%, its worst day since 2020, investingLive said. FXStreet said a fresh wave of selling in AI-linked stocks pulled Wall Street lower, and that the Democratic win in both houses of Congress added worries that AI data-centre projects could face moratoriums.

• FXStreet, which had said on Wednesday that the yen underperformed its peers, said it outperformed all of them as traders sought safety, helped by minutes of the Bank of Japan's September meeting in which members agreed it was suitable to keep raising rates. USD/JPY fell 0.46% to 157.699 on our feed, after a low of 157.537 at 18:04 UTC, and still posted its eighth close in a row above 157.50.

• AUD/USD fell 1.07% to 0.69299, the lowest of its last eleven closes, a session after closing back above 0.70, with a low of 0.69242 at 21:25 UTC. Almost all of the drop came after 14:00 UTC. After the close, FXStreet said risk appetite soured as US tech stocks sold off, while strong US jobs data lifted the dollar. Action Forex's daily report had said a move below 0.6952 would target a retest of the 0.6893 low.

The BoE hiked, and the dollar won part of Wednesday back

• The Bank of England raised its rate by 25 basis points to 4.00%, from 3.75%. The vote was 8–1, with Catherine Mann backing a 50-basis-point hike to 4.25%, Action Forex said, and Governor Andrew Bailey said inflation risks were tilted to the upside, FXStreet reported.

• GBP/USD fell 0.17% to 1.34493, ending a run of six higher closes. Its high, 1.35009, came at 07:07 UTC, before the decision; FXStreet said solid US data and hawkish comments from Fed officials weighed on the pound despite the hike.

• The dollar closed higher against the euro, the pound and the Australian, New Zealand and Canadian dollars on our feed, and lower against the yen and the Swiss franc, a session after closing lower against all seven. Action Forex said the dollar index bounced from a five-week low. Cleveland Fed President Beth Hammack and Richmond Fed President Thomas Barkin backed a gradual pace of rate hikes, FXStreet reported.

• EUR/USD slipped 0.09% to 1.12186. Its high, 1.12682 at 04:07 UTC, stopped less than a pip short of 1.1269, the upper line of the tell in our weekly wrap, and the pair closed well below it, so the tell is still open. After the close, FXStreet said the euro had been turned back from a one-month high, and that ECB President Christine Lagarde said the data between now and December would decide a hike.

• USD/CAD rose 0.29% to 1.40183, back above 1.40, after staying below 1.3986 until 14:15 UTC, with a low of 1.39427 at 07:01 UTC; Action Forex's daily outlook had again said sustained trading below 1.3986 would target 1.3792. Bank of Canada Governor Tiff Macklem told the House of Commons there may be a need to raise rates further, FXStreet said.

• Gold rose 0.86% to $4,098.99 on our feed, its second higher close in a row and the highest of its last eleven, after a high of $4,146.88 at 03:57 UTC that FXStreet called a two-week top. WTI settled at $90.52, up 2.72%, investingLive said, a session after FXStreet put it down 9% in the US afternoon.

What the data showed

• GBP · Bank of England rate: 4.00%, as forecast, from 3.75%.

• USD · Initial jobless claims: 189,000, against 197,000 expected.

• EUR · Producer prices: up 11.1% on the year in September, against 10.9% expected, Action Forex said.

Market gauges and what's next

Our proprietary metrics at the close of the session:

• Readings: an MRS of 71, unchanged, with its news component at its full 20 at both closes; a CTS of 50, also unchanged, with its carry backdrop at 64 out of 100 and the Bank of England's hike now the latest decision in its inputs; and an FSI of 50, Neutral, unchanged.

• Top of our strength table: the Australian dollar, a clear leader, first for 338 of the session's 1,438 minutes, 24% of them, yet the major that lost the most against the dollar. The yen spent the fewest minutes on top, 111. The table counts minutes in each place, not the session's net move.

• Bottom: no currency clearly trailed.

Next: the US jobs report is due today at 13:30 UTC, with nonfarm payrolls forecast at 65,000 and unemployment at 4.2%, alongside Canada's jobs data. Bank of Japan Governor Ueda speaks at 16:00 UTC, and New Zealand votes on Saturday, FXStreet said.