Market Drivers; US Session

The US Dollar continued its upward trajectory, reaching new highs as investors weighed the potential impact of a “Trump trade,” further Fed easing, and upcoming US economic data. Key events for Wednesday, October 23, include the release of US mortgage applications, existing home sales, and the EIA’s crude oil inventory report, along with speeches by Fed officials Bowman and Barkin.

The Euro, Pound, and Yen all declined against the US Dollar, influenced by a combination of economic data and central bank policies. The Euro was further pressured by concerns about the European economy and the ECB’s monetary policy stance. The Pound and Yen were also impacted by domestic factors, including Brexit-related uncertainty and geopolitical tensions in the region.

Commodities prices remained volatile. WTI oil prices rose above $72 per barrel, driven by escalating tensions in the Middle East and Chinese stimulus measures. Gold prices reached an all-time high near $2,750 per ounce, supported by geopolitical concerns, weaker US yields, and uncertainty surrounding the US election. Silver prices also rallied, reaching levels not seen since 2012.

Overall, the forex market remains volatile, influenced by geopolitical factors, economic data, and central bank policies.