The US Dollar (USD) has extended its recovery on Tuesday, climbing to new multi-week highs on the back of steady bets for extra Fed tightening, while increasing hopes of a potential deal to unlock the US-Iran-Hormuz conflict seem to have been ignored by market participants.
Here is what you need to know on Wednesday, September 23:
The US Dollar Index (DXY) climbed further north of its psychological 100.00 barrier, hitting new two-month tops amid the mixed tone in US Treasury yields across the curve. The preliminary S&P Global Manufacturing and Services PMIs for the current month will be the salient data release, seconded by the weekly MBA Mortgage Applications, the EIA’s weekly report on US crude oil inventories and the speech by the Fed’s Barr.
EUR/USD has come under extra selling pressure on Tuesday, adding to Monday’s decline and clinching fresh multi-week lows near 1.1430. The advanced S&P Global Manufacturing and Services PMIs for the month of September are due alongside the speeches by the ECB’s Vujcic and Lane.
GBP/USD has retreated to levels last seen in late July, around 1.3320, on the back of firm sentiment surrounding the Greenback. Across the Channel, market participants will closely monitor the release of the flash September S&P Global Manufacturing and Services PMIs.
USD/JPY has built on previous gains and posted gains for the third day in a row, remaining above the 157.00 hurdle. Next on tap on the domestic calendar will be the publication of the advanced S&P Global PMIs on September 24.
AUD/USD has built on Monday’s decline, briefly breaking below the 0.7100 support, or three-day troughs. Next in Oz will be the preliminary S&P Global PMIs.
Front-month WTI futures have lost further ground, breaching the key $90.00 mark per barrel to hit fresh three-week lows on the back of renewed hopes for a reopening of the Strait of Hormuz.
Gold has reversed its initial downbeat tone and traded with modest gains, always below the key $4,400 mark per troy ounce. The daily rebound in the precious metal has come despite a firmer US Dollar, always propped up by steady bets of further Fed rate hikes, and mixed US Treasury yields across the board.
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.