Forex Today: US Dollar holds at multi-month highs ahead of mid-tier data


Here is what you need to know on Tuesday, October 3:

Following a quiet start to the new week, the US Dollar (USD) benefited from surging US Treasury bond yields in the American session on Monday. The US Dollar Index touched its highest level since November above 107.00 and went into a consolidation phase early Tuesday. Later in the session, August JOLTS Job Openings data will be featured in the US economic docket alongside IBD/TIPP Economic Optimism Index for October.

US Dollar price this week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Australian Dollar.

  USD EUR GBP CAD AUD JPY NZD CHF
USD   0.74% 0.84% 0.90% 1.73% 0.15% 1.36% 0.62%
EUR -0.75%   0.10% 0.17% 0.98% -0.57% 0.64% -0.12%
GBP -0.83% -0.08%   0.07% 0.91% -0.68% 0.53% -0.21%
CAD -0.90% -0.16% -0.02%   0.82% -0.73% 0.47% -0.28%
AUD -1.73% -0.97% -0.87% -0.82%   -1.57% -0.35% -1.11%
JPY -0.16% 0.57% 0.69% 0.74% 1.52%   1.22% 0.46%
NZD -1.37% -0.64% -0.53% -0.48% 0.35% -1.22%   -0.76%
CHF -0.62% 0.12% 0.22% 0.28% 1.10% -0.46% 0.76%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

 

The benchmark 10-year US T-bond yield climbed to a multi-year-high above 4.7% on Monday. Wall Street's main indexes opened in positive territory but closed mixed, with the Dow Jones Industrial Average losing 0.22% and the Nasdaq Composite gaining 0.83% on a daily basis. In the European morning, US stock index futures trade virtually unchanged on the day.

During the Asian trading hours, the Reserve Bank of Australia (RBA) announced that it left the policy rate unchanged at 4.1% as expected. In the policy statement, the RBA repeated that some further tightening of the monetary policy may be required. AUD/USD came under renewed bearish pressure following the RBA's inaction and declined toward 0.6300, touching its lowest level in nearly a year in the process.

EUR/USD fell to a new 2023-low below 1.0460 in the Asian session on Tuesday before staging a modest rebound toward 1.0500. 

After failing to stabilize above 1.2200, GBP/USD extended its downtrend and dropped below 1.2100 for the first time since March.

Pressured by surging US yields, Gold price suffered heavy losses on Monday and continued to push lower early Tuesday. After falling to a new multi-month low below $1,820, XAU/USD staged a technical correction and recovered toward $1,830 by the European morning.

USD/JPY turned sideways slightly below the critical 150.00 level during the Asian trading hours as investors moved to the sidelines on growing expectations of an intervention in the foreign exchange market. Japanese Finance Minister Shunichi Suzuki said that they stand ready to respond to movements in exchange markets but refrained from commenting on currency intervention.

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