By FX Empire.com

Crude oil prices retreated on Monday, as the strength of the U.S. dollar pushed crude oil prices lower, where the U.S. dollar gained strong momentum after the Bank of Japan announced an intervention in the currency market to weaken the Yen, which sent the U.S. dollar higher against major currencies. Moreover, jitters from Europe continued to weigh down on confidence, which also put negative pressure on crude oil prices.

Meanwhile, the Chicago PMI for October showed activities eased worse than expected, which also weighed down on confidence and encouraged investors to target lower yielding assets, adding more negative pressure on crude oil prices.

The main focus for markets will remain the FOMC meeting on Wednesday, where the FOMC is likely to keep the current monetary policy unchanged, however, some speculate that the Fed could embark on another round of quantitative easing. Meanwhile, traders will turn their attention on Tuesday to the ISM manufacturing index, which is expected to show improving manufacturing activities in October.

Tuesday November 01:

The United States will start the day at 14:00 GMT with the construction spending figures for September, with expectations that the index will expand by 0.3% from the previous 1.4% expansion.

The ISM manufacturing will also be released at 14:00 GMT, where the indicator is expected to show improvement to 52.3 in October from 51.6 in September.

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