The US dollar remained stable at the higher end of its range despite a rebound in US yields reaching new multi-week highs. This comes as investors await key US data releases and speculation grows ahead of the November 5 election. The US Dollar Index saw varying gains and losses near the 104.30 zone, alongside rising yields and a slight increase in the risk complex. Data releases to watch for include the Goods Trade Balance, Wholesale Inventories, the FHFA’s House Price Index, Consumer Confidence, JOLTs Job Openings, and the API’s weekly report on US crude oil inventories.
EUR/USD saw a reversal of some of its losses from the previous day, testing levels beyond 1.0800. Germany’s Consumer Confidence, as measured by GfK, will be a focal point in Europe. GBP/USD experienced slight upward movement as the US Dollar showed mixed price action. Data releases for the day include the BoE’s Consumer Credit Survey, M4 Money Supply, Mortgage Approvals, and Mortgage Lending figures. USD/JPY reached fresh highs close to the 154.00 barrier, with the Unemployment Rate and Jobs/Applications Ratio set to be released.
Concerns over China’s stimulus measures continued to weigh on AUD/USD, causing spot prices to break below the key 0.6600 support level. Next up in Australia is the release of the RBA’s Monthly CPI Indicator on October 30. WTI prices fell below $67.00 per barrel on Monday following Israel’s attack on Iran over the weekend, avoiding the country’s nuclear facilities and oil industry. Gold prices dipped after two days of gains, influenced by a steady US Dollar and rising US yields. Silver prices remained around $33.70 per ounce on Monday.
In conclusion, the US dollar remained stable in the face of rising US yields and key data releases leading up to the November 5 election. EUR/USD saw a reversal of losses, while GBP/USD gained slight traction. USD/JPY reached new highs, and concerns over China’s stimulus measures impacted AUD/USD. WTI prices fell after Israel’s attack on Iran, and Gold prices retreated alongside rising US yields. Silver prices remained steady at $33.70 per ounce. Investors will continue to monitor key data releases and geopolitical developments influencing the markets.
