Forex Analysis
AUD/USD has met some renewed selling pressure on Thursday, coming down from tops near 0.7040 to revisit the 0.7000 region ahead of the opening bell in Asia. The pair’s daily decline has come despite a lacklustre performance in the Greenback at the time when investors continued to monitor developments from the Middle East. Looking ahead, the release of flash PMIs will grab the attention in Oz at the end of the week.
EUR/USD has added to Wednesday’s losses, although it managed to revert an earlier drop to the 1.1190 region, reclaiming 1.1200 and beyond following the closing bell on Wall Street. The pair’s second daily pullback in a row has come despite another poor price action in the US Dollar, while market participants remained cautious on events from France and the US-Iran front. On Friday, the main focus will be on the publication of preliminary PMIs in Germany, the Euroland and the US.
Gold prices resume their decline on Thursday, easing toward the area of two-month lows around $4,050 per troy ounce. Higher crude oil prices have reignited speculation of further tightening by the Fed, supporting the US Dollar and weighing on the precious metal.
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In-Depth Analysis
The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.
United Kingdom (UK) inflation as measured by the Consumer Price Index (CPI) accelerated to 3.5% YoY in September, up from 3.1% in August, according to the Office for National Statistics (ONS).
