The US Dollar continued to gain strength in the foreign exchange market as investors focused on the “Trump trade”, expected Fed easing, and upcoming US data releases. On October 23, the US Dollar Index (DXY) broke below the key 104.00 barrier and reached new highs, despite a slight decrease in yields. Key data releases included Mortgage Applications, Existing Home Sales, and the EIA’s report on US crude oil inventories. Additionally, speeches from Fed officials Bowman and Barkin were on the agenda.
In the Eurozone, the EUR/USD pair maintained a bearish tone and dropped to new lows around 1.0800. The release of the advanced EMU’s Consumer Confidence data was expected, along with speeches from ECB officials Lagarde, Cipollone, and Lane. Meanwhile, the GBP/USD pair extended losses and briefly touched the 1.2940 level. The focus in the UK was on the release of advanced S&P Global Manufacturing and Services PMIs.
USD/JPY saw further gains as the US Dollar strengthened, pushing the pair above the 151.00 level. In Japan, upcoming data releases included weekly Foreign Bond Investment figures and the preliminary Jibun Bank Manufacturing and Services Index. The AUD/USD pair managed to bounce back from the 0.6650 zone and retest the 0.6700 barrier. The flash Judo Bank Manufacturing and Services PMIs were awaited on the Australian calendar.
Commodity prices also saw movement, with WTI prices rising above $72.00 per barrel due to tensions in the Middle East and Chinese stimulus measures. Gold prices reached an all-time high near $2,750 per ounce troy, driven by uncertainty surrounding the US election and geopolitical concerns. Silver prices also surged towards the $35.00 mark per ounce, a level not seen since October 2012.
Overall, the FX market continued to see the US Dollar gather strength against major currencies. Investors were closely monitoring upcoming data releases and speeches from central bank officials for further guidance on the market direction. Commodity prices were also influenced by geopolitical factors and economic stimulus measures, resulting in significant movements in the market. Stay tuned for more updates on the latest developments in the foreign exchange and commodity markets.
