Forex Today: US Dollar stabilizes ahead of key data releases

Eren Sengezer FXStreet

Here is what you need to know on Tuesday, October 17:

The US Dollar (USD) weakened against its rivals on Monday as risk flows dominated the action in financial markets following a bullish opening in Wall Street. The cautious market stance helps the USD holds its ground early Tuesday as investors await September Retail Sales and Industrial Production data from the US. Several Federal Policymakers are scheduled to speak later in the session as well.

Despite escalating geopolitical tensions, major equity indexes in the US registered strong gains on Monday. In the European morning, US stock index futures trade modestly lower. According to the latest headlines surrounding the Israel-Hamas conflict, heavy bombardments took place in southern Gaza - Khan Younis, Rafah and Deir el-Balah. Meanwhile, US President Joe Biden will travel to Israel on Wednesday. Israel Defense Forces international spokesperson Lt. Col. Jonathan Conricus told CNN that Biden's visit would not complicate or delay a ground operation in Gaza.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Pound Sterling.

	USD	EUR	GBP	CAD	AUD	JPY	NZD	CHF
USD		0.05%	0.28%	0.08%	-0.32%	0.02%	0.08%	0.12%
EUR	-0.04%		0.24%	0.04%	-0.37%	-0.04%	0.03%	0.09%
GBP	-0.29%	-0.24%		-0.21%	-0.61%	-0.27%	-0.21%	-0.17%
CAD	-0.07%	-0.01%	0.21%		-0.39%	-0.06%	0.01%	0.04%
AUD	0.32%	0.36%	0.59%	0.39%		0.33%	0.38%	0.43%
JPY	-0.02%	0.03%	0.28%	0.06%	-0.33%		0.07%	0.10%
NZD	-0.08%	-0.02%	0.22%	-0.01%	-0.39%	-0.06%		0.03%
CHF	-0.12%	-0.07%	0.17%	-0.03%	-0.44%	-0.09%	-0.03%

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).

USD/CAD closed deep in negative territory on Monday before stabilized slightly above 1.3600 early Tuesday. Statistics Canada will release Consumer Price Index (CPI) data for September and the Bank of Canada (BoC) will publish core inflation figures.

During the Asian trading hours, the data from New Zealand revealed that inflation in the third quarter, as measured by the change in the Consumer Price Index (CPI), rose to 1.8% on a quarterly basis from 1.1% in the second quarter. This reading came in below the market expectation of 2%. NZD/USD came under heavy bearish pressure after this data and the pair was last seen trading near 0.5900, losing 0.5% on a daily basis.

The Reserve Bank of Australia's (RBA) minutes of the October policy meeting showed on Tuesday that policymakers considered raising the policy rate by another 25 basis points or holding it steady before deciding to leave it unchanged. “Members acknowledged upside risks to inflation were a significant concern," the RBA noted. AUD/USD gained traction in the Asian session and climbed above 0.6350.

EUR/USD closed in positive territory on Monday but struggled to extend its rebound. In the early European session, the pair went into a consolidation phase at around 1.0550.

Annual wage inflation in the UK, as measured by the change in Average Earnings Excluding Bonus, edged lower to 7.8% in August from 7.9% in July, the UK's Office for National Statistics reported on Tuesday. GBP/USD came under modest bearish pressure after this data and was last seen losing 0.3% on the day at 1.2175.

USD/JPY failed to make a decisive move in either direction on Monday and extended its sideways grind at around 149.50 early Tuesday.

Gold registered losses despite the USD weakness on Monday as US Treasury bond yields pushed higher. XAU/USD consolidates its losses near $1,920 on Tuesday and the 10-year US Treasury bond yield clings to daily gains near 4.75%.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD holds above 1.3450 despite Mideast uncertainty

GBP/USD trades flat on the day above 1.3450 following the bearish action seen in the early European session on Thursday. Conflicting rhetoric from US and Iranian officials about a potential deal fuels market concerns and limits the pair's upside, while investors refrain from taking large positions ahead of Friday's critical Nonfarm Payrolls data from the US.

EUR/USD declines below 1.1550 on modest USD recovery

EUR/USD corrects lower after posting gains for two consecutive days and trades below 1.1550 in the second half of the day on Thursday. Markets stay wary about the prospects of a US-Iran peace deal and the reopening of the Strait of Hormuz, keeping the safe-haven USD underpinned and making it difficult for the pair to regain its traction.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

Top Altcoins: Ripple, Cardano, and Solana vulnerable to deeper losses

Ripple, Cardano, and Solana are trading in the red on Thursday, facing downside pressure. The technical outlook for altcoins is bearish, as XRP risks falling below $1.00, ADA is eyeing the 50-day Exponential Moving Average at $0.1766, and SOL remains capped below a cluster of resistance levels.

AI defies the disinflationary playbook: Why lower oil prices might not be enough to cool core inflation

The global economic landscape has been fixated on the Middle East since the US-Iran war started in late February, reacting to significant changes in crude Oil prices and assessing how they could influence inflation dynamics and growth outlook.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.