Forex Today: Focus remains on US data and geopolitics

The US Dollar (USD) has navigated an inconclusive range, struggling to reverse the weekly correction, while market participants continued to assess developments from the geopolitical landscape, all amid a steady pre-Fed lull.

The US Dollar Index (DXY) has traded in a tight range, alternating gains with losses in the 101.80-101.60 band. The usual weekly Initial Jobless Claims are due alongside the CB Leading Index.

EUR/USD has receded a tad, coming close to the 1.1200 contention zone amid a generalised lack of direction in the FX galaxy. Next of note on the domestic docket will be the flash Consumer Confidence in the euro area along with the speech by the ECB’s Panetta.

GBP/USD has managed to build on Tuesday’s gains, briefly surpassing the 1.3400 barrier, up modestly for the day. The CBI Business Optimism Index and CBI Industrial Trends Orders will be released across the Channel.

USD/JPY has come under further downside pressure, returning to the sub-158.00 region and adding to the previous day’s decline. The weekly Foreign Bond Investment figures are due In Japan.

AUD/USD has advanced for the fourth day in a row, further extending its recent break above the 0.7000 yardstick. Next on the Australian docket will be the advanced S&P Global Manufacturing and Services PMIs on October 23.

Front-month WTI futures have come under extra selling pressure, trading at shouting distance from the $96.00 mark per barrel, always amid steady hopes of a diplomatic end to the US-Iran confrontation.

Gold has managed to regain some composure and clinch acceptable gains, putting the $4,150 mark per troy ounce to the test once again. The yellow metal’s bounce has followed marginal losses in US Dollar and mixed US Treasury yields across the curve.