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Forex Today: US inflation data gathers all the looks

The Greenback rose further and reached new multi-week highs supported by higher yields and rising speculation of a 25 bps rate cut by the Fed in November, all ahead of the publication of the key US CPI on Thursday.

Here is what you need to know on Thursday, October 10:

The US Dollar Index (DXY) advanced markedly and came just short of the key barrier at 103.00. The release of the US Inflation Rate takes centre stage seconded by the usual Initial Jobless Claims. In addition, the Fed’s Daly and Cook are due to speak.

EUR/USD’s decline picked up extra pace and sent the pair to fresh multi-week lows near 1.0930. Retail Sales in Germany will be the salient event on the old continent seconded by the ECB Accounts.

GBP/USD seems to have met some decent contention in the mid-1.3000s against the backdrop of a stronger US Dollar. The RICS House Price Balance will be released.

USD/JPY maintained the weekly bullish stance and reclaimed the 149.00 barrier and beyond amidst gains in the Greenback and higher US yields. Bank Lending figures are next on tap, followed by weekly Foreign Bond Investment and Producer Prices.

AUD/USD clinched its fifth consecutive daily pullback and challenged the key support at 0.6700 the figure. Inflation Expectations are due along with the final Building Permits and Private House Approvals.

Prices of WTI added to Tuesday’s decline and briefly tested multi-day lows near $71.60 per barrel amidst geopolitical tension, Chinese demand concerns and the weekly build of US crude oil inventories.

Gold prices retreated further and put the key $2,600 mark per ounce troy to the test amidst a firm US Dollar, rising yields and increasing bets of a Fed’s 25 bps rate cut in November. Silver prices dropped for the third straight day, although they managed well to keep business above the $30.00 mark per ounce.

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Pablo Piovano

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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