The US Dollar surged back above 102.00 on renewed Fed tightening expectations, dragging EUR/USD to 1.1170, AUD/USD to 0.6850, and gold toward the $4,000 support level.
Markets are repricing a potential Fed rate hike in December after October inflation data, and the Dollar Index has regained the 102.00 barrier and is refocusing on recent highs around 102.50. Renewed Fed tightening expectations directly support the dollar. Fed's Bowman speech and MBA mortgage data are next on tap.
The pair resumed its decline toward the 1.1170 region as the dollar strengthened on renewed Fed tightening expectations. The final German inflation print and speeches by ECB's Cipollone and Lagarde are due next, which could add further directional pressure.
The pair has given back Monday's rebound and is revisiting the 1.3350 zone with sharp losses, driven by the strong dollar bid. A heavy UK data calendar on November 12, including preliminary Q3 GDP, could add volatility.
The pair advanced sharply past the 158.00 hurdle and is testing two-week highs as the dollar strengthened on December Fed hike repricing. The Reuters Tankan and Machine Tool Orders are the next Japanese data points.
The pair plummeted to eight-month lows around 0.6850, fully erasing Monday's bullish attempt, as the broad dollar rally on Fed tightening expectations weighed on risk currencies. Quarterly Home Loans and Investment Lending data are next in Australia.
Gold dropped to two-day lows and is threatening the key $4,000 per troy ounce level, pressured by the strong dollar bid, rising US Treasury yields across the curve and growing speculation of extra Fed tightening. Higher yields and a stronger dollar raise the opportunity cost of holding gold.
The US Dollar Index has reclaimed the 102.00 level, targeting recent highs near 102.50 as investors reprice the probability of a Federal Reserve rate hike in December following October inflation data. This broad dollar strength has pressured major pairs, with EUR/USD sliding toward 1.1170 and AUD/USD hitting eight-month lows of 0.6850. Meanwhile, gold has dropped to two-day lows near $4,000 per troy ounce amid rising Treasury yields.
Investors have started pricing in another possible Federal Reserve rate hike in December following October inflation data, pushing the Dollar Index back above 102.00.
Marked gains in the US Dollar on expectations of another Fed rate hike in December have pushed the pair back toward 1.1170.
The pair has abandoned Monday's rebound and is trading with sharp losses near 1.3350 as the US Dollar regains strength on Fed hike expectations.
The pair jumped past 158.00 to two-week highs as investors repriced a potential December Fed rate hike, boosting the dollar against the yen.
It fell to eight-month lows around 0.6850, fully reversing Monday's gains, as the strong US Dollar bid on Fed hike expectations weighed on the aussie.
Gold slipped to two-day lows near $4,000 as the stronger US Dollar, rising Treasury yields and expectations of extra Fed tightening weighed on the metal.