The US Dollar (USD) has added to Monday’s optimism, advancing to the area of fresh two-week highs on the back of mixed US Treasury yields and the continuation of the pre-Fed cautious stance in the global markets.
The US Dollar Index (DXY) has further extended its recent break above the key 102.00 hurdle, reaching new two-week tops. The FOMC gathering will take centre stage seconded by the usual press conference by Chair Warsh. Data-wise, the usual MBA Mortgage Applications are due, followed by the advanced Goods Trade Balance results, Wholesale Inventories, and the EIA’s weekly report on US crude oil stockpiles.
EUR/USD has come under extra selling pressure, receding toward two-week lows near 1.1130. Germany’s GfK Consumer Confidence gauge will only be released on the domestic calendar.
GBP/USD has retreated for the third day in a row, approaching the key 1.3300 neighbourhood, or five-day lows. The Autumn Budget will be the main focus on the UK docket.
Another firm performance has lifted USD/JPY to the boundaries of the 15800 barrier, hitting three-day highs. Next on tap in Japan will be the usual weekly Foreign Bond Investment figures along with the Consumer Confidence reading, all due on October 29.
AUD/USD has outperformed its risk-related peers, reaching new five-week highs north of the key 0.7000 yardstick. The main focus on the Australian docket will be the release of inflation figures for the month of September.
Front-month WTI futures (December contract) have come under extra pressure, challenging the $99.00 mark per barrel and adding to Monday’s retracement as traders continue to gauge hopes of a diplomatic solution to the US-Iran-Hormuz conflict.
Gold has picked up marked traction, extending Monday’s uptick and reaching three-day highs further north of the key $4,000 mark per troy ounce. Declining crude oil prices along with mixed US Treasury yields appear to have lent some support to the precious metal on Tuesday.
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.