Forex Today: Investors’ attention remains on geopolitics and Fedspeak

The Greenback alternated gains with losses amidst higher yields on Monday, while investors continued to digest Friday’s Payrolls against the backdrop of steady prudence in response to rising geopolitical jitters in the Middle East.

Here is what you need to know on Tuesday, October 8:

The US Dollar Index (DXY) kicked off the week in an irresolute tone, although it managed to keep the trade near recent peaks well north of the 102.00 barrier. The NFIB Business Optimism Index is due along with Balance of Trade results, the RCM/TIPP Economic Optimism Index, and the API’s weekly report on US crude oil inventories. In addition, the Fed’s Bostic, Musalem, Kugler, and Collins are due to speak.

EUR/USD remained on the defensive for yet another session, putting recent lows near 1.0950 to the test on Monday. Industrial Production in Germany will be published, followed by speeches by the ECB’s Schnabel and McCaul.

GBP/USD extended its decline for the fifth consecutive day and flirted with four-week lows near 1.3060. Next on tap on the docket is the BRC Retail Sales Monitor.

USD/JPY surrendered initial gains to fresh tops past the 149.00 yardstick amidst the vacillating Greenback and higher US yields. Household Spending, the Current Account figures and Average Cash Earnings are all due.

AUD/USD accelerated its monthly retracement and revisited three-week lows near the 0.6740 zone. The publication of the RBA Minutes will take centre stage seconded by the NAB Business Confidence index and the speech by the RBA’s Hauser.

Prices of WTI rose further and flirted with the key 200-day SMA north of the $77.00 mark per barrel, always on the back of persistent geopolitical concerns in the Middle East.

Gold prices extended their leg lower to the $2,640 region per ounce troy following increasing US yields and bets of a smaller rate cut by the Fed. Silver prices tested three-day lows near the $31.40 zone per ounce, reversing four straight days of gains.