Forex Today: Focus shifts to ECB-speak and German inflation

The US Dollar (USD) has regained strong upside traction, retracing a big chunk of Monday’s pullback as investors have started to reprice another potential rate hike by the Federal Reserve in December, particularly following October inflation data.

The US Dollar Index (DXY) has regained the 102.00 barrier and beyond, refocusing on recent highs around 102.50. The usual MBA Mortgage Applications are due along with a speech by the Fed’s Bowman.

EUR/USD has resumed its decline, slipping back toward the 1.1170 region following marked gains in the US Dollar. The final Inflation Rate in Germany is due next followed by speeches by the ECB’s Cipollone and Lagarde.

GBP/USD has set aside Monday’s rebound, trading with sharp losses and revisiting the 1.3350 zone. Next on tap across the Channel will be the RICS House Price Balance comes on November 12, along with the preliminary Q3 GDP Growth Rate, flash quarterly Business Investment figures, Balance of Trade results, Construction Orders/Output, Industrial/Manufacturing Production and the NIESR Monthly GDP Tracker.

USD/JPY has advanced sharply past the 158.00 hurdle, testing the area of two-week tops. The Reuters Tankan Index comes next alongside Machine Tool Orders. 

AUD/USD has plummeted to eight-month lows around 0.6850, fully fading Monday’s bullish attempt. The quarterly Home Loans data and Investment Lending for Homes are due next in Oz.

Front-month WTI futures (December contract) have further extended their pullback, this time briefly piercing the $84.00 mark per barrel for the first time since late August in response to cooling tensions in the Middle East.

Gold has dropped to two-day lows, threatening its key $4,000 one per troy ounce following the strong bid bias in the US Dollar, rising US Treasury yields across the curve and rising speculation of extra tightening by the Fed.