Forex Today: UK inflation comes to the fore

Pablo Piovano FXStreet

The US Dollar (USD) has further extended its corrective move on Tuesday, at some point easing to three-week lows, as investors continued to assess hopes of a potential US-Iran agreement, as per still-unconfirmed news.

The US Dollar Index (DXY) has retreated for yet another day, briefly revisiting the 101.50 region, or three-week troughs, always on the back of a firm improvement in the risk-associated universe. The usual MBA Mortgage Applications are due next, followed by the EIA’s weekly report on US crude oil stockpiles.

EUR/USD has added to the current rebound, although the bull run faltered around 1.1260. Next on the domestic calendar will be the flash Consumer Confidence in the euro area on Thursday.

GBP/USD has gathered extra steam, advancing to five-week highs just past 1.3400. The release of the key Inflation Rate takes centre stage across the Channel as well as Public Sector Net Borrowing figures.

USD/JPY has kept its sidelined theme well in place, this time trading on the back foot and returning to the low 158.00s. The Balance of Trade results will be the salient event on the Japanese calendar.

AUD/USD has clinched its third consecutive day of gains, finally challenging the key 0.7000 threshold. Next on the Australian docket will be the advanced S&P Global Manufacturing and Services PMIs on October 23.

Front-month West Texas Intermediate (WTI) futures have come under fresh downside pressure despite hitting tops past the psychological $100.00 mark per barrel earlier in the day. Hopes of an agreement to end the Middle East crisis appear to have dented the recent strong upside traction in the commodity.

Gold has built on the previous weakness, easing to the boundaries of the $4,100 mark per troy ounce on Tuesday. The precious metal’s retracement has come despite the weaker US Dollar and mostly declining US Treasury yields across the board.

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.

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