The US Dollar Index (DXY) surged past the 101.00 barrier driven by increasing safe haven demand amid rising geopolitical concerns. Key data releases and a series of speeches from Fed officials added to the optimism on Wednesday, October 2. The ADP Employment Change report, weekly Mortgage Applications tracked by MBA, and EIA’s report on US crude oil inventories were in focus. Fed speakers including Barkin, Bostic, Hammack, Musalem, and Bowman were scheduled to share their insights.
EUR/USD fell to two-week lows near 1.1040 under pressure from the stronger US Dollar and prevailing risk-off sentiment. The euro area’s Unemployment Rate data release was accompanied by speeches from ECB officials De Guindos, Buch, Elderson, and Schnabel. Meanwhile, GBP/USD also experienced a decline to multi-day lows near the 1.3240-1/3230 band as the final S&P Global Services PMI for the UK awaited release on October 3.
USD/JPY saw a slight rise amidst a volatile session with the Greenback gaining momentum and global yields continuing to decline. The focus shifted to September’s Consumer Confidence gauge. AUD/USD reversed its recent gains and dropped back to the 0.6860 zone due to the stronger Dollar and risk-off sentiment. Down Under, the Ai Group survey was the only release on the calendar.
In the commodities market, WTI prices surged to new highs around $72.00 per barrel following an attack on Israel by Iran. Gold prices regained strength on safe haven demand, climbing back to the $2,670 level per troy ounce. Silver prices also saw an uptick, reaching around the $32.00 mark per ounce after two consecutive days of losses.
Overall, the Greenback extended its gains on Wednesday supported by geopolitical concerns and key data releases. With speeches from multiple Fed officials and important economic reports on the calendar, the market remained active and volatile. Major currency pairs like EUR/USD and GBP/USD saw declines, while USD/JPY and AUD/USD experienced mixed movements. In the commodities market, oil prices surged following geopolitical tensions, while precious metals like gold and silver regained strength on safe haven demand. Investors remained cautious amidst uncertainties in the global economy.
