The US Dollar Index (DXY) has seen further gains, reaching new multi-week highs as it breaks through the 104.00 barrier. This rise has been supported by an increase in US yields, ongoing uncertainty surrounding the US election, and expectations of a more cautious approach by the Federal Reserve in terms of easing.
EUR/USD has continued to retreat for the third consecutive day, staying below the 1.0800 support level. In Europe, focus will be on the release of advanced HCOB Manufacturing and Services PMIs in Germany and the euro area, as well as speeches from ECB officials McCaul, Lane, and Buch.
GBP/USD has also weakened, approaching the key support level of 1.2900 after losing over five cents in just four weeks. UK data on Car Production and preliminary S&P Global Manufacturing and Services PMIs will be released, along with the CBI Industrial Trends Orders.
USD/JPY has surpassed the 153.00 hurdle for the first time since late July, driven by a stronger Dollar and rising yields in both US and Japan. Foreign Bond Investment figures and the flash Jibun Bank Manufacturing and Services Index are upcoming data releases for the pair.
AUD/USD saw a reversal from Tuesday’s gains, falling to two-month lows near 0.6620. Australia will release the advanced Judo Bank Manufacturing and Services PMIs, which could impact the pair’s performance.
US crude oil inventories unexpectedly rose last week, keeping WTI prices hovering around the $70.00 mark per barrel. Gold prices experienced notable losses despite reaching a record high near $2,760 per ounce earlier in the day, while Silver prices also corrected lower from recent peaks.
