Key Chinese data and Fedspeak come to the fore

The rally in the US Dollar remained unabated for yet another session, this time equally underpinned by firmer US data releases and the marginally dovish rate cut by the ECB at its policy meeting.

Here is what you need to know on Friday, October 18:

The US Dollar Index (DXY) kept its monthly rally well and sound, managing to confront the critical 200-day SMA in the 103.80 region. The US housing sector takes centre stage at the end of the week with the releases of Building Permits and Housing Starts. In addition, the Fed’s Bostic, Kashkari and Waller are all due to speak.

EUR/USD tumbled to nearly three-month lows after flirting with the key support at 1.0800 following the dovish tilt at the ECB event. The EMU’s Current Account and Construction Output will be unveiled.

GBP/USD alternated gains with losses near 1.2990 despite the march north in the Greenback gathered extra pace. Market participants will closely follow the publication of Retail Sales.

USD/JPY built on previous gains and crept higher, slightly surpassing the key 150.00 barrier following extra strength in the US Dollar and rising US yields. Investors’ focus now shifts to the Inflation Rate in Japan and weekly Foreign Bond Investment figures.

Unexpectedly, AUD/USD left behind three straight days of losses and advanced markedly just beyond the key 0.6700 hurdle. The next data release of note Down Under will be the preliminary Judo Bank Manufacturing and Services PMIs on October 24.

WTI prices retreated marginally on Thursday, hovering around the $70.00 mark per barrel on the back of a bullish report from the EIA, while rising uncertainty in the Middle East limited the downside potential.

Gold prices rose to a record high near $2,690 per ounce troy despite the rally in the Greenback and the marked bounce in US yields. Prices of the ounce of Silver charted decent gains, faltering just ahead of the $32.00 mark.