The US Dollar Index (DXY) gained for the second day in a row, breaking beyond 106.50, its highest level since last Friday. Following the latest batch of earnings announcements, the dollar was boosted by increased Treasury rates and weakening market mood. The Dow Jones fell 0.32%, while the Nasdaq fell 2.43%. The yield on the 10-year Treasury note increased to 4.94%.
Israel agreed to postpone its assault of Gaza. Prime Minister Benjamin Netanyahu claimed that a ground attack is being planned. Following these remarks, crude oil prices recovered, and WTI surpassed $85.00.
Data from the United States revealed an unexpected increase in New Home Sales in September, hitting 759,000 (annual rate), above the market expectation of 680,000.
The US will release important statistics later today. The initial estimate of third-quarter GDP is projected to show a 4.2% increase. There will also be reports on the Core Personal Consumption Expenditure Price Index, Initial Jobless Claims, and Durable Goods Orders. These figures are expected to have an influence on the market, the US Dollar, and expectations for Federal Reserve (Fed) monetary policy. Bond market movements may potentially have an impact on the XAU/USD. If US data continues to show a strong economy, the US Dollar may benefit.
EUR/USD surged beyond 1.0600 before falling down to 1.0560. The pair is still under pressure, although remaining above a short-term rising line. On Thursday, the European Central Bank (ECB) is anticipated to maintain interest rates steady. The emphasis will be on ECB President Christine Lagarde’s outlook. With the Eurozone in recession and inflation indications decreasing, it is doubtful that interest rates will be raised anytime soon.
GBP/USD closed at 1.2100, its lowest daily finish since October 3. The British Pound also fell against the Euro on predictions that the Bank of England (BoE) will keep interest rates unchanged. The USD/JPY has broken over 150.00 and is soaring, which may draw the attention of Japanese policymakers. This event may enhance volatility in Yen crosses in the coming hours.
Following the Bank of Canada (BoC) meeting, the USD/CAD soared to its highest level since March, approaching 1.3800. The Bank of Canada held its benchmark rate
steady at 5% while maintaining a tightening stance. According to the Bank’s inflation prediction, inflation will achieve the 2% objective by the end of 2025, slightly later than its earlier expectation of mid-2025.
The Australian Dollar surged throughout the Asian session as a result of higher-than-expected Australian inflation statistics, but then fell again. The AUD/NZD pair reached a five-week high of 1.0915 before dipping to 1.0860. The AUD/USD reached weekly highs of 0.6400 before sliding quickly to 0.6300. Michele Bullock, Governor of the Reserve Bank of Australia (RBA), will testify before the Senate Economics Legislation Committee on Thursday. The Export and Import Price Index will be issued later in the day.
The Central Bank of the Republic of Turkey (CBRT) is expected to convene on Thursday, and the expectation is that the interest rate will be raised by 500 basis points, bringing it to 35%. The USD/TRY pair has set a new high, closing over 28.00.
Despite increased rates, gold resumed momentum and probed levels above $1,980. Meanwhile, Silver has been unable to retake the $23.00 level.
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.