On Tuesday, the Yen rose, most likely as a result of Japanese government intervention to prevent further devaluation of the currency. When the USD/JPY was trading over 150.00, the pair fell as low as 147.28. However, it recovered its losses and surged to 149.00. Short-term volatility is likely, with a negative tilt.
US JOLTS Job Openings exceeded estimates, pushing US yields higher. The 10-year yield hit 4.80%, the highest level since 2007. The US Dollar Index rose to 107.34, then fell back when the USD/JPY fell, ending the day just below 107.00. Positive US statistics, higher rates, and cautious market sentiment continue to boost the greenback. On Wall Street, equities fell 1.40% on average on Tuesday. The ADP Employment report is coming in later today.
EUR/USD hit a new ten-month low around 1.0450 before recovering marginally to 1.0470. The couple is still under strain. Eurostat will publish Retail Sales and the Producer Price Index on Wednesday. GBP/USD ended the day flat, hovering around 1.2070. After US data, the pair fell to 1.2052, its lowest level since March.
Following a lower-than-anticipated reading of the Swiss Consumer Price Index (CPI) for September, the Swiss Franc lags behind, with the annual rate climbing from 1.6% to 1.7%, below the projected 1.8%. The USD/CHF pair reached a high of 0.9244 before falling down towards 0.9200.
On Wednesday, the Reserve Bank of New Zealand (RBNZ) will announce its decision. The key rate of 5.5% is projected to remain unchanged. NZD/USD fell below the 20-day Simple Moving Average (SMA), then recovered to trade above 0.5900.
The AUD/USD fell for the second day in a row, weighed down by risk-off sentiment and a stronger dollar. The pair fell below 0.6300 for the first time since November 2022. USD/CAD surged for the third day in a row, breaking through September highs. The pair ended over 1.3700 and is now closing in on the March highs of 1.3861.
Gold fell for the sixth day in a row, reaching a low of $1,814 before recovering and gradually increasing to $1,825. After plunging more than 5% the previous session, silver rebounded considerably, closing at $21.20.
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