Forex Today: FOMC Minutes should shed further detail on latest Fed decision

Pablo Piovano FXStreet

The US Dollar (USD) has come under fresh downside pressure on Tuesday, slipping back toward of two-day lows as shrinking fiscal jitters in France appear to have lent some support to the broader risk-linked galaxy.

Here is what you need to know on Wednesday, October 7:

The US Dollar Index (DXY) has faded the optimism seen at the beginning of the week, coming under fresh downside pressure and breaching below the 102.00 contention zone. The usual MBA Mortgage Applications are due, followed by the NY Fed’s Consumer Inflation Expectations and the FOMC Minutes. In addition, the Fed’s Logan is due to speak.

EUR/USD has regained the smile, rebounding to weekly tops near 1.1280, where it seems to have met some initial resistance. On the domestic calendar, Germany will release its Industrial Production figures, alongside speeches by the ECB’s Cipollone and Vujčic.

GBP/USD has climbed with certain conviction, retargeting the 1.3300 hurdle on the back of the softer tone in the Greenback. The BBA Mortgage Rate will be released along with the Lloyds House Price Index.

USD/JPY added to Monday’s uptick, surpassing once again the 158.00 barrier, although bulls’ conviction remains elusive. The Reuters Tankan Index comes next, followed by Average Cash Earnings and the flash Coincident and Leading Economic indexes.

AUD/USD has managed to clinch its third consecutive daily gain, coming just short of the critical 0.7000 milestone. The final Building Permits data and Private House Approvals are due ahead of the Ai Group Manufacturing Index.

Front-month WTI futures have added to the ongoing pullback, down for the third day in a row, and this time breaking below the $87.00 mark per barrel as supply concerns in the Middle East continued to ease.

Gold has kept its consolidative mood in place, advancing modestly but still trading below the $4,200 mark per troy ounce. The fresh offered stance on the US Dollar, along with declining US Treasury yields across the board, accompanied the precious metal’s decent advance on Tuesday.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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