Forex Today: Investors’ focus now shifts to UK inflation

Pablo Piovano FXStreet

A mildly positive session left the US Dollar trading around recent levels against the backdrop of diminishing yields worldwide, while market participants maintained their attention on messages from Fed’s officials regarding the bank’s likely rate path.

Here is what you need to know on Wednesday, October 16:

The US Dollar Index (DXY) struggled to advance further, maintaining its trade in the upper end of the range in the low 103.00s. The MBA’s Mortgage Applications are due along with Export and Import Prices, all prior to the weekly report on US crude oil inventories by the API.

There was no respite for the downward bias in EUR/USD, which this time receded to new lows near 1.0880. The ECB’s Lagarde is due to speak ahead of the central bank’s interest rate decision on Thursday.

Auspicious data releases on the UK docket helped GBP/USD clinch to daily gains after briefly trespassing the 1.3100 barrier. The UK Inflation Rate takes centre stage.

Fresh appreciation of the Japanese currency prompted USD/JPY to give away part of Monday’s decent advance. Machinery Orders and the speech by the BoJ’s Adachi are next on tap.

AUD/USD added to Monday’s negative price action and revisited the 0.6700 neighbourhood. The Westpac Leading Index and the speech by the RBA’s Hunter are due next.

Demand concerns in combination with alleviating geopolitical concerns weighed heavily on prices of WTI, sending them to the area below the $70.00 mark, or two-week lows.

Prices of Gold resumed their uptrend and surpassed the $2,660 mark per ounce troy following lacklustre gains in the US Dollar and shrinking US yields. Silver prices faded the negative start to the week and rose well past the $31.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.