FX Today: The FOMC Minutes take centre stage

The US Dollar (USD) extended its weekly recovery, advancing to new two-week highs in a context dominated by the risk-off sentiment. Meanwhile, there was no news regarding negotiations to end the ongoing US government shutdown.

Here’s what to watch on Wednesday, October 8:

The US Dollar Index (DXY) added to Monday’s gains and surpassed the 98.50 level on Tuesday, hitting fresh two-week highs despite US Treasury yields edging lower. The FOMC Minutes will be the salient event, followed by the usual MBA Mortgage Applications and the EIA’s weekly report on US crude oil inventories. In addition, the Fed’s Musalem, Barr and Kashkari are due to speak.

EUR/USD kept its offered stance for the second day in a row, revisiting the lower end of its recent range near the 1.1650 region. Germany’s Industrial Production is due. Additionally, the ECB’s Buch, Elderson and Lagarde are all due to speak.

GBP/USD set aside two daily advances in a row and faced renewed selling pressure in the low-1.3400s. The BoE’s Pill is expected to speak in an otherwise empty UK docket.

USD/JPY extended its sharp uptick and clinched fresh eight-month tops well north of the 151.00 barrier. The Average Cash Earnings will be released on the Japanese calendar, seconded by the Current Account results, Bank Lending figures, and the Eco Watchers Survey.

AUD/USD left behind two consecutive daily gains and traded with marked losses, revisiting the sub-0.6600 region. Building Permits and Private House Approvals are next on tap in Oz.

WTI prices surrendered part of their recent advance, briefly breaking below the $61.00 mark per barrel as traders continued to evaluate the smaller-than-expected output hike by the OPEC+.

Gold rose to an all-time high just past the $3,990 mark per troy ounce on Tuesday, always propped by the prospects of Fed rate cuts and the generalised risk-off sentiment in the global markets. Silver prices gave away some gains, breaking below the key support at $48.00 mark per ounce.