The US Dollar Dominates on Geopolitical Concerns and Strong Economic Data
Amid geopolitical tensions in the Middle East and Chair Powell’s indication of smaller rate cuts, the US Dollar surged to new two-month highs this week. The US Dollar Index (DXY) showed strength every day, surpassing the 102.00 mark confidently. Key economic data to watch out for include the NFIB Business Optimism Index, Balance of Trade, RCMTIPP Economic Optimism Index, Mortgage Applications, Wholesale Inventories, US crude oil supplies report, FOMC Minutes, Inflation Rate, Initial Jobless Claims, Producer Prices, and Michigan Consumer Sentiment.
EUR/USD Faces Pressure as US Dollar Gains Momentum
EUR/USD retreated to seven-week lows around 1.0950 as the US Dollar’s strength weighed on the pair. Keep an eye on Germany’s Factory Orders, Retail Sales in the broader EMU, Germany’s Industrial Production, Balance of Trade, Retail Sales in Germany, ECB Accounts, final Inflation Rate, and Current Account results for potential market impact.
GBP/USD Sees Weekly Losses Amid Market Volatility
Despite bouncing off three-week lows, GBP/USD experienced weekly losses amidst market fluctuations. Watch out for the Halifax House Price Index, BBA Mortgage Rate, BRC Retail Sales Monitor, RICS House Price Balance, GDP figures, Goods Trade Balance, Industrial Production, Manufacturing Production, Construction Output, and NIESR Monthly GDP Tracker for upcoming data releases.
USD/JPY Hits Two-Month Highs Amid Positive Sentiment
USD/JPY surged past the 109.00 level to reach new two-month peaks, driven by positive market sentiment. Look out for the preliminary Coincident Index, Leading Economic Index, Household Spending, Current Account results, Average Cash Earnings, Machine Tools Orders, Foreign Bond Investment figures, Bank Lending, Producer Prices, and the Reuters Tankan Index for further insights.
AUD/USD Retraces Gains Despite Recent Highs
AUD/USD reversed course after hitting new 2024 highs above 0.6900, ending three consecutive weeks of gains. Keep an eye on the Inflation Gauge by the Melbourne Institute, NAB Business Confidence, RBA Minutes, Westpac Consumer Confidence gauge, Consumer Inflation Expectations, and final Building Permits and Private House Approvals for future trends in the pair.
Anticipating Economic Perspectives: Key Voices to Listen to
- The Fed’s Bowman and Kashkari, along with the ECB’s Cipollone and Lane, will speak on October 7.
- On October 8, listen to the Fed’s Bostic, Musalem, Kugler, and Collins, ECB’s Schnabel and McCaul, and RBA’s Hauser.
- Mark your calendar for October 9 to hear from the Fed’s Jefferson, Logan, Barkin, Goolsbee, Collins, and Williams, ECB’s Elderson, and RBA’s Kent.
- October 10 features speeches from RBA’s Hunter, Fed’s Daly and Cook, ECB’s Nagel.
- Wrap up the week on October 11 with talks from Fed’s Goolsbee, Logan, and Bowman.
Central Banks in Focus: Key Meetings to Shape Monetary Policies
- Watch out for the RBI and RBNZ meetings on October 9.
- The BoK will announce its rate decision on October 11.