Forex Today: UK jobs data in the limelight

Pablo Piovano FXStreet

The US Dollar (USD) has managed to regain some composure, leaving behind two daily drops in a row helped by rising US Treasury yields and reignited social/political concerns in France.

The US Dollar Index (DXY) has reclaimed the area above the key 102.00 barrier on Monday, setting aside part of last week’s decline. The ADP Employment Change Weekly is due next, seconded by Pending Home Sales, Housing Starts, Building Permits and the API’s weekly report on US crude oil inventories.

Renewed concerns in France have weighed on the single currency, prompting EUR/USD to fade part of its recent improvement and recede toward the 1.1200 region. The EMU’s Current Account results and Construction Output readings are next on tap, followed by the ZEW’s Economic Sentiment in both Germany and the bloc.

GBP/USD has given away part of its recent two-day recovery, meeting some decent support near the 1.3300 zone. The labour market report will take centre stage across the Channel.

USD/JPY has further extended its consolidative phase, this time leaving behind three daily drops in a row and advancing past the 158.00 hurdle. The Balance of Trade results will be the salient event on the Japanese docket.

Firm Chinese data releases have boosted AUD/USD, sending it to the vicinity of the key 0.7000 threshold, adding to Friday’s rebound. Next on the Australian calendar will be the flash S&P Global Manufacturing and Services PMIs on October 23.

Front-month WTI futures have met some fresh selling pressure on Monday, briefly piercing the $97.00 mark per barrel amid some profit-taking mood and traders’ assessment of developments in the Middle East, the Russia-Ukraine conflict, and the impact on Russian crude oil exports from US waivers on tariffs and sanctions.

Gold has added to Friday’s correction and retreated below the $4,150 mark per troy ounce on the back of the US Dollar’s rebound and higher US Treasury yields across the curve.

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.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold drops to daily lows below $4,150

Gold builds on Friday’s retracement and slips back below the $4,150 mark per troy ounce on Monday. The better tone in the US Dollar and a decent bounce in US Treasury yields across the curve keep the yellow metal under pressure for now.

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Bitcoin edges higher above $82,000, building strong structural support despite roughly $229 million in ETF outflows last week. Ethereum recovers above $2,400 as bulls strive to regain trend control, backed by a subtle recovery in momentum indicators.

Higher than expected inflation shakes markets: What to prepare for?

US CPI report came in stronger than expected, lifting the probability of a December rate hike higher once again. Even though Fed Chair Warsh reinforced expectations of a hold for the October’s meeting, markets now face a two-step event: a likely pause on October 28, followed by an interest rate hike on December 9.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.