FX Today: Fedspeak expected to grab all the attention

The US Dollar (USD) rose to multi-day highs on Monday, propped up almost exclusively by the strong depreciation of the Japanese Yen. In the meantime, market participants continued to closely follow developments around the US government shutdown despite the lack of relevant news over a potential deal.

Here’s what to watch on Tuesday, October 7:

The US Dollar Index (DXY) regained upside impulse, rising to fresh multi-day peaks near 98.50 accompanied by rising US yields and an absence of news around the shutdown. The RCM/TIPP Economic Optimism Index is next on tap on the domestic calendar, seconded by the NY Fed Consumer Inflation Expectations and the API’s weekly report on US crude oil inventories. In addition, the Fed’s Bostic, Bowman, Miran, and Kashkari are all due to speak.

EUR/USD receded to multi-day lows near 1.1650, where some initial contention seems to have emerged. Factory Orders in Germany are due, seconded by the speech by the ECB’s Lagarde.

GBP/USD left behind the initial bearish tone and managed to add to Friday’s uptick, revisiting the boundaries of the 1.3500 hurdle. The Halifax House Price Index and the BBA Mortgage Rate will be published across the Channel.

USD/JPY jumped to fresh two-month highs near 150.50 on the back of the strong resurgence of the downward bias in the Japanese Yen. Household Spending figures are due, followed by the advanced Coincident Index and Leading Economic Index.

AUD/USD extended its recovery for the second day in a row, surpassing the 0.6600 barrier once again. The Westpac Consumer Confidence will be the sole release in Oz.

Prices of WTI rebounded to two-day highs past the $62.00 mark per barrel as traders assessed the smaller-than-expected crude oil output hike by the OPEC+ over the weekend.

Gold prices rose to all-time highs near the $3,960 mark per troy ounce on the back of steady safe haven demand, shutdown concerns and expectations of rate cuts by the Fed. Silver prices rose to fresh highs past the $48.00 mark per ounce for the first time since April 2011.