Market Drivers; US Session

US Dollar Holds Steady Amidst Economic Data and Election Speculation

The US Dollar Index (DXY) traded in a narrow range near the 104.30 level on Tuesday, as investors balanced expectations for key economic data releases with growing speculation ahead of the November 5 US election.

Key Economic Data

A series of important US economic indicators are scheduled for release, including:
• Goods Trade Balance
• Wholesale Inventories
• FHFA House Price Index
• Consumer Confidence Index
• JOLTs Job Openings
• API Weekly Crude Oil Inventory Report

These data releases will provide valuable insights into the health of the US economy and could influence the trajectory of the US Dollar.

Currency Pair Update

• EUR/USD: The Euro recovered some of its losses from Friday, pushing the EUR/USD pair back above the 1.0800 level. Germany’s Consumer Confidence Index, measured by GfK, is the key economic event for the Eurozone on Tuesday.

As the US election approaches, political uncertainty and its potential impact on the US economy and financial markets could further influence the US Dollar’s performance. Traders will be closely monitoring these factors and the upcoming economic data releases to gauge the currency’s future direction.

Currency and Commodity Market Update

EUR/USD: The Euro staged a partial recovery on Monday, pushing the EUR/USD pair back above the 1.0800 level. Market participants will be closely watching Germany’s Consumer Confidence Index, measured by GfK, for further insights into the Eurozone economy.

GBP/USD: The Pound Sterling gained some ground against the US Dollar on Monday, benefiting from a lack of clear direction in the Greenback. Key economic data releases from the UK, including the BoE’s Consumer Credit Survey, M4 Money Supply, Mortgage Approvals, and Mortgage Lending figures, will be closely monitored.

USD/JPY: The US Dollar strengthened against the Japanese Yen, pushing the USD/JPY pair towards the 154.00 level. Japan’s Unemployment Rate and Jobs/Applications Ratio will be released, which could impact the Yen’s performance.

AUD/USD: The Australian Dollar weakened against the US Dollar, pressured by concerns over China’s economic stimulus measures. The RBA’s Monthly CPI Indicator, scheduled for release on October 30, will be a key event for the Australian Dollar.

Commodities:

• Crude Oil: Oil prices declined on Monday as geopolitical tensions in the Middle East eased. Israel’s attack on Iran, which avoided critical infrastructure, limited the impact on oil supply.
• Gold: Gold prices retreated after a two-day rally, as the stronger US Dollar and rising yields weighed on the precious metal.