FX Today: Fed speakers should keep investors entertained

The US Dollar (USD) extended its decline to fresh monthly lows as investors reacted to weaker-than-expected ADP employment data, which reignited speculation that the Federal Reserve could deliver additional easing. Meanwhile, optimism over a potential deal to end the US government shutdown continued to build.

Here’s what to watch on Wednesday, November 12:

The selling pressure gathered renewed steam on Tuesday, sending the US Dollar Index (DXY) to new monthly lows near 99.30 despite a slight uptick in US Treasury yields and amid further bets of a rate reduction by the Fed by year-end. The usual weekly MBA Mortgage Applications are due ahead of the API’s weekly report on US crude oil inventories. In addition, the Fed’s Barr, Williams, Paulson, Waller, Bostic and Miran are all due to speak.

EUR/USD advanced to multi-day highs, briefly surpassing the key 1.1600 barrier amid the continuation of the ongoing recovery. The final Inflation Rate in Germany will be the salient event on the domestic calendar alongside speeches by the ECB’s Schnabel and De Guindos.

GBP/USD clocked marginal gains, although enough to maintain its upside momentum well in place for yet another day, this time revisiting the 1.3180 zone. The BoE’s Pill is due to speak in an otherwise empty docket across the Channel.

USD/JPY kept its choppy performance well and sound in the upper end of its recent range near the 154.00 region. Machine Tool Orders and the Reuters Tankan Index are next in Japan.

AUD/USD struggled to extend Monday’s strong rebound further north of the 0.6540 region. Next on tap Down Under will be the release of Home Loans figures and Investment Lending for Homes.

Prices of WTI flirted with six-day highs near the $61.00 mark per barrel as traders evaluated ongoing oversupply concerns and risks of further sanctions on Russian crude oil.

Gold clinched its third consecutive daily advance on Tuesday, coming closer to the $4,150 mark per troy ounce following rising speculation of Fed rate cuts and the downward bias in the US Dollar. Silver prices extended its recovery for the fifth day in a row, this time surpassing the $51.00 mark per ounce, or three-week tops.