American Session’s Market Drivers: US Inflation Remains in Focus

The US Dollar continued its upward trajectory, driven by sticky inflation data and hawkish comments from Federal Reserve officials. Investors are closely watching upcoming inflation metrics, including Producer Prices and Consumer Sentiment, for clues about the Fed’s future monetary policy.

Key Points:

US Dollar Strength: The US Dollar Index (DXY) reached new two-month highs, fueled by increased expectations of a November rate cut.
Euro Weakness: EUR/USD declined, briefly touching below the 1.0900 support level. Germany’s final inflation rate and current account data are key events to watch.

Pound Pressure: GBP/USD extended its downward trend, nearing the 1.3000 support. The UK released a slew of economic data, including GDP, trade balance, and industrial production figures.

Yen Stability: USD/JPY pulled back from its recent high around 149.50. Japan’s industrial production data is scheduled for release on October 15.

Aussie Resilience: AUD/USD outperformed other risk-sensitive currencies, supported by geopolitical concerns and hopes for economic recovery in China and the US.
Commodities: WTI oil prices surged due to geopolitical tensions and rising demand expectations. Gold and silver prices recovered after recent declines.

The US dollar’s strength and ongoing focus on inflation will likely continue to influence global markets in the coming days. Investors are closely monitoring economic indicators and central bank statements for further insights into the economic outlook.