Forex Market Update London Session

Session brief Neutral bias Nov 5, 2026, 08:02 UTC

Claire DuboisEuropean Markets Analyst · ForexR analyst

Gold takes the lead in early European trade by pushing above its first resistance level, while major currency pairs remain constrained ahead of key Bank of England and ECB events.

London Session Overview: Safe-Haven Assets Catch a Bid

As the London session gets underway, early trading action shows a clear preference for precious metals over risk assets. Gold leads the major instruments with a 1.37% gain on the day, followed by Bitcoin adding 0.20%. At the other end of the spectrum, the Nasdaq 100 lags behind, shedding 1.26% on the day, while Ethereum is down 0.37% and WTI Crude Oil drops 0.26%. Among the major currencies, the picture is relatively subdued; EUR/USD is up 0.12% and AUD/USD gains 0.14%, whereas USD/JPY and USD/CAD are down 0.17% and 0.16% respectively, leaving the greenback slightly softer across the board.

For context on the broader dollar sentiment, US Treasury yields closed yesterday with the 10-year yield at 4.9%, down 5 basis points, and the 2-year yield at 4.58%, down 3 basis points.

Sterling Holds Steady Ahead of Bank of England Action

GBP/USD comes into the European morning showing no change on the day at 1.34699, presenting a mixed daily trend but an upward trajectory on the four-hour charts. Over the current day, the pair has carved out a high at 1.35001 and a low at 1.34589. The five-day window shows an overall gain of 1.09%. Price currently sits between the daily pivot at 1.34589 and R1 at 1.3513. A sustained push from buyers clearing R1 at 1.3513 could open the path toward further upside action, while a breakdown below the daily pivot invalidates the immediate bullish structure and turns focus to S1 at 1.34153. You can read our broader analysis here. To calculate potential boundaries for the sessions ahead, you may also find a pivot point calculator useful.

Gold Breaks Resistance While the Euro Edges Higher

Gold (XAU/USD) displays the most decisive price action so far, trading at 4115.45 and pushing above R1 at 4113.65. The precious metal now sits beyond the top of the pivot ladder, supported by an upward four-hour trend, though the daily trend remains mixed. Should bullish momentum wane and price slip back below R1, the daily pivot at 4016.73 would serve as the next downside reference. Conversely, sustained trading above 4113.65 keeps the technical bias tilted firmly upward. The day high presently stands at 4146.77 against a day low of 4057.74.

Meanwhile, EUR/USD trades at 1.12407, positioned between the daily pivot at 1.12274 and R1 at 1.12724. The pair has logged a day high of 1.12676 and a day low of 1.12219, with the four-hour trend pointing up. A breakout past R1 at 1.12724 could encourage buyers, whereas a slide through the 1.12274 pivot would expose S1 at 1.11824.

Market coverage this morning focuses on the upward momentum across gold and silver, according to FX Street, FXEmpire, and Action Forex. Alongside the metals complex, discussions feature the recent US election outcome weighing on the greenback, as reported by ExchangeRates.

Key Levels and Macro Catalysts to Watch

The economic calendar brings a dense schedule of European and UK risk events today. Kicking off the EMU docket, we have a speech from the ECB's Schnabel at 08:05 UTC, followed by the European Producer Price Index figures at 10:00 UTC, where the month-over-month print is estimated at 2.5% against a previous 1.9%, and the year-over-year estimate stands at 10.9% compared to the prior 8.2%.

Focus then shifts squarely to the UK with the Bank of England Interest Rate Decision at 12:00 UTC. The central bank is estimated to raise rates to 4% from the previous 3.75%. The vote split will also be parsed closely, with the estimate for a rate hike vote at 7 versus a previous 3, and the vote to keep rates unchanged estimated at 2 against a prior 6. Alongside the rate decision, traders will navigate the release of the BoE Minutes, the Monetary Policy Report, and the Monetary Policy Summary, followed by a speech from BoE Governor Bailey at 12:30 UTC. At the same 12:00 UTC mark, ECB President Lagarde is also scheduled to speak. Looking to the US, Challenger Job Cuts are due at 10:30 UTC, followed by Unit Labor Costs at 13:30 UTC, estimated at 0.6% against a previous 1.2%. You can monitor these upcoming data points using an economic calendar.

Bottom line: The London session begins with gold showing strong upward momentum while currency markets wait for high-impact central bank events. With mixed daily trends across most instruments, traders will look to the Bank of England rate decision and ECB commentary to provide the next directional cues.