The US dollar (USD) jumped to a multi-day positive and came under renewed downward pressure after hitting fresh weekly highs amid somewhat easing concerns on the US-China trade front, while a lack of news on a deal to end the US federal government shutdown still prevailed.
Here’s what to watch on Thursday, October 23:
The US dollar index ( DXY ) snapped three straight daily gains and broke below 99.00 support amid poor performance of US Treasury yields across the curve. The Chicago Fed National Activity Index is to follow Existing Home Sales.
EUR/USD it regained some traction and regained the area beyond 1.1600, shedding some of the recent weakness. The European Commission will publish its advanced indicator of consumer confidence ahead of the ECB Lane speech.
GBP/USD retreated for the fourth day in a row, flirting with 1.3300 support before staging a decent comeback. The CBI Business Optimism Index and CBI Industrial Trends Orders will be released, accompanied by the BoE Hall speech.
USD/JPY ended the day with modest losses around 151.80, reversing three consecutive daily advances. Weekly data on foreign bond investments are due.
AUD/USD adding to Tuesday’s decline, retreated marginally and returned to the 0.6480 zone. Flash S&P Global Manufacturing and Services PMIs are due to be released alongside the RBA’s Bullock speech on 24 October.
WTI rebounded sharply to hit four-day highs near the $59.00 a barrel mark as traders assessed a new surge of optimism on the US-China trade front.
Gold briefly flirted with the area of ​​two-week lows, closing in on the key $4,000 per troy ounce amid cooling tensions on the trade front and a firm tone in the US dollar. Further weakness pulled silver prices below $48.00 an ounce, although they calmed down a bit after that.
