FX Today: The flash U-Mich Consumer Sentiment grabs all the attention

Pablo Piovano FXStreet

The US Dollar (USD) maintained its constructive tone on Thursday, advancing to two-month highs amid the lack of progress around the US government shutdown and always underpinned by the generalised risk-off sentiment in the FX universe.

Here’s what to watch on Friday, October 10:

The US Dollar Index (DXY) clinched its fourth day in a row of gains, markedly surpassing the 99.00 barrier to hit new multi-week highs against the backdrop of some widespread recovery in US Treasury yields. The preliminary U-Mich Consumer Sentiment gauge will take centre stage alongside speeches by the Fed’s Goolsbee and Musalem.

EUR/USD lost further ground and tumbled to multi-week lows near 1.1550, down for the fourth straight day. Germany’s final Inflation Rate and the Economic Sentiment gauge in Germany and the Euroland are next on tap on the domestic calendar on October 14.

GBP/USD extended its deep retracement, revisiting the area of two-month troughs below the 1.3300 support. The always relevant UK labour market report will be the next significant data release across the Channel on October 14.

USD/JPY hit new eight-month highs past the 153.00 hurdle, up for the sixth consecutive day. Japanese Producer Prices and Bank Lending figures are due.

AUD/USD followed the rest of its risk-associated peers and faded Wednesday’s uptick, retreating well south of the 0.6600 mark. The RBA’s Bullock and Kent will speak in an otherwise empty docket in Oz.

WTI prices reversed four daily gains in a row, coming under fresh selling pressure and approaching the $61.00 mark per barrel as traders assessed the alleviated geopolitical concerns and the latest larger-than-expected build in US crude oil inventories.

Gold prices traded on the back foot, receding sharply from their recent record highs and returning to the area below the $4,000 mark per troy ounce on the back of geopolitical uncertainty, the stronger US Dollar, profit taking, and Fed rate cut bets. Silver prices broke above the $51.00 mark per ounce for the first time in history, although that move lost traction afterwards, leaving the metal with marginal gains for the day.

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.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold holds steady above $4,050; hawkish Fed bets favor bearish traders

Gold remains confined in a range below the $4,100 mark through the early European session as traders opt to wait for further developments surrounding the Middle East crisis. Meanwhile, the uncertainty over US-Iran peace talks continues to act as a tailwind for the safe-haven US Dollar.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

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.