Markets’ focus shifts to the release of flash PMIs

Further gains saw the Greenback retest the area of three-month tops, helped by a decent bounce in US yields across the curve, persistent uncertainty around the US election and markets’ view of a more cautious Fed easing.

Here is what you need to know on Thursday, October 24:

The US Dollar Index (DXY) advanced to new multi-week highs, extending further its recent breakout of the 104.00 barrier. The Chicago Fed National Activity Index comes next seconded by the usual weekly Initial Jobless Claims, New Home Sales, the Kansas Fed Manufacturing Index and the flash S&P Global Manufacturing and Services PMIs. In addition, the Fed’s Hammack is due to speak.

EUR/USD retreated for the third straight day, maintaining its weekly leg lower well in place below the 1.0800 support. The release of advanced HCOB Manufacturing and Services PMIs in Germany and the euro area take centre stage in Europe. Additionally, the ECB’s McCaul, Lane and Buch are expected to speak.

GBP/USD weakened further and came close to the key support at 1.2900 the figure. In just four weeks, Cable lost more than five cents. Car Production is next on tap on the UK calendar seconded by the preliminary S&P Global Manufacturing and Services PMIs, and the CBI Industrial Trends Orders.

USD/JPY surpassed the 153.00 hurdle for the first time since late July following the stronger Dollar and rising yields in US and Japan. The weekly Foreign Bond Investment figures come next, followed by the flash Jibun Bank Manufacturing and Services Index.

AUD/USD reversed Tuesday’s advance and tumbled to two-month lows near 0.6620. The advanced Judo Bank Manufacturing and Services PMIs will be released in Oz.

An unexpectedly build in US crude oil inventories during last week kept WTI prices on the defensive just above the $70.00 mark per barrel.

Prices of Gold ended the day with marked losses despite reaching a record high near $2,760 per ounce troy earlier in the day. Silver prices came down heavily, correcting lower from recent peaks in levels just shy of the $35.00 mark per ounce.