The US Dollar (USD) maintained its upside momentum for yet another day, navigating the area of multi-month tops amid further repricing of Fed rate cuts and the still unresolved US federal government shutdown, which is now the longest in history.
Here’s what to watch on Thursday, November 6:
The US Dollar Index (DXY) climbed to fresh highs near 100.40 for the first time since late May. This was supported by a decent uptick in US Treasury yields across the curve and a firmer-than-expected ISM Services PMI in October. On the US economic calendar, the Challenger Job Cuts report will be the sole release. Additionally, several Federal Reserve (Fed) officials—including Barr, Williams, Paulson, Hammack, Waller, and Musalem—are scheduled to speak.
EUR/USD slipped back below 1.1470, hitting new three-month lows and trading on the defensive for the sixth consecutive day. Key economic data from Europe includes Germany’s Industrial Production and the HCOB Construction PMI, followed by Eurozone Retail Sales and the HCOB Construction PMI. Market participants will also be listening to ECB officials Schnabel, De Guindos, Buch, and Lane as they deliver speeches.
GBP/USD attempted a tepid comeback after bottoming out near the key 1.3000 support level, marking seven-month troughs. The Bank of England (BoE) is set to meet ahead of the release of the S&P Global Construction PMI and the BoE’s Decision Maker Panel (DMP) report.
USD/JPY resumed its uptrend, surpassing the 154.00 barrier once again following modest gains in the Greenback and rising US Treasury yields. In Japan, upcoming data releases include Household Spending figures and the weekly Foreign Bond Investment readings.
AUD/USD recorded decent gains after an early drop to three-week lows near 0.6460. Next on the Australian calendar is the Balance of Trade report.
In commodities, WTI crude oil lost momentum and retreated to four-day lows, breaking below the key $60.00 per barrel mark. Traders weighed the impact of a stronger US Dollar, cooling economic activity data from China, and a larger-than-expected weekly build in US crude oil inventories.
Gold rose markedly, reversing three consecutive daily pullbacks and approaching the key $4,000 mark per troy ounce once again. Silver prices also rebounded sharply, leaving behind three straight days of losses and reclaiming the $48.00 mark per ounce.
Stay tuned for further updates as these economic events unfold.
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