The US Dollar retreated further and tested three-day lows as the Trump rally seems to have lost some enthusiasm among market participants, although this carries the potential to be only temporary and may open the door to another “buy the dip” move.
The US Dollar Index (DXY) lost further ground and threatened to challenge the key 106.00 support amid lower US yields. Next on tap will be Building Permits, Housing Starts, and the API’s weekly report on US crude oil inventories.
EUR/USD advanced to three-day highs and managed to surpass the key 1.0600 hurdle on the back of the Dollar’s losses. The EMU’s final Inflation Rate takes centre stage seconded by Current Account results, the Labour Cost Index, and the speech by the ECB’s Elderson.
Finally, GBP/USD regained the smile and rose markedly to the proximity of the 1.2700 barrier following six consecutive daily declines.
USD/JPY resumed its uptrend, leaving behind Friday’s deep decline and reclaiming the 155.00 zone and above.
AUD/USD added to Friday’s bounce and manage to reclaim the 0.6500 hurdle in response to the persistent knee-jerk in the US Dollar. The RBA will publish its Minutes of the November 5 meeting.
WTI prices rose markedly and flirted with the key $70.00 mark per barrel on the back of the resurgence of geopolitical concerns in the Russia-Ukraine front.
The weaker Greenback and lower US yields across the board encouraged Gold prices to set aside part of the recent multi-day weakness and revisit the area beyond the $2,600 mark per troy ounce. By the same token, Silver prices surpassed the $31.00 mark per ounce, hitting new five-day highs.