Market Drivers, US Session

The U.S. Dollar’s strength continued unabated, driven by robust domestic economic data and a marginally dovish stance from the European Central Bank. This positive sentiment for the U.S. Dollar was evident in its continued appreciation against major currencies.

Key economic indicators and events to watch on Friday, October 18, included the U.S. Dollar Index approaching the critical 200-day Simple Moving Average, the release of U.S. housing data, and speeches from Federal Reserve officials.

The Euro, as measured by EUR/USD, experienced a significant decline, nearing its three-month low. This downward trend was primarily attributed to the dovish tone adopted by the European Central Bank.

The British Pound, GBP/USD, fluctuated near the 1.2990 level. Market participants were closely monitoring the release of Retail Sales data in the United Kingdom.

The Japanese Yen, USD/JPY, continued its upward trajectory, surpassing the 150.00 mark. This appreciation was supported by the strengthening U.S. Dollar and rising U.S. interest rates. Investors were anticipating the release of Japan’s Inflation Rate and weekly Foreign Bond Investment figures.

The Australian Dollar, AUD/USD, staged a notable recovery after a three-day decline. The currency’s appreciation was driven by positive market sentiment. The next significant data release for Australia would be the Judo Bank Manufacturing and Services PMIs on October 24.

Crude oil prices, WTI, experienced a slight pullback, hovering around the $70.00 per barrel mark. A bullish report from the Energy Information Administration provided support to prices, while rising geopolitical tensions in the Middle East limited the downside.

Precious metals, gold and silver, recorded impressive gains. Gold prices reached a new record high near $2,690 per ounce troy, while silver prices also appreciated significantly, approaching the $32.00 mark.