Dollar consolidates Thursday’s gains, focus shifts to PMI data

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This is what you need to know to trade today Friday October 22:

The dollar managed to outperform rivals Thursday when the yield on 10-year US Treasuries hit its highest level since early April at 1,706%. However, cautiously upbeat market sentiment appears to be limiting the dollar’s gains against its rivals on Friday, with the DXY index holding flat around 93.70 after breaking a six-day losing streak. IHS Markit to Release Preliminary Manufacturing and Services PMI Reports for Germany, Euro Zone, UK and US San Francisco Fed Chair Mary Daly and FOMC Chair Jerome Powell to deliver speeches at 14:00 GMT and 15:00 GMT, respectively.

Macro data: US data showed on Thursday that weekly jobless claims fell to 290,000, the lowest reading since March 2020. On the downside, the Philadelphia Fed manufacturing index fell to 23.8 in October, 25 market outlook disappointed In the euro zone, the consumer confidence indicator fell to -4.8 in October’s advanced reading from -4. On Friday, the UK Office for National Statistics reported that retail sales and retail sales excluding fuel declined 0.2% and 2.6%, respectively, in September.

Wall Street: Rising hopes that US lawmakers will reach an agreement on President Biden’s spending bill gave a boost to stocks Thursday as the S&P 500 hit a new record high of 4,551. US stock index futures are trading mixed early in the European session despite reports that Chinese real estate giant Evergrange made a payment of $ 83.5 million on bond interest.

The EUR/USD it failed to break above the 1.1670 zone in the first half of the week and closed in negative territory below 1.1650 on Thursday. The pair remains relatively quiet as investors await the October PMI figures. The member of the Governing Council of the European Central Bank (ECB), Ignazio Visco, said that supply bottlenecks could last longer than expected.

The oro it is struggling to gain bullish momentum but continues to trade in the upper half of its weekly range above $ 1,780. XAU / USD could struggle to break above $ 1,800 unless driven by falling US Treasury yields.

The GBP/USD appears to have lost balance after disappointing retail sales data on Friday and the pair is posting small daily losses below 1.3800.

cryptocurrencies: After the rally to new all-time highs, Bitcoin made a correction and lost more than 5% on Thursday. However, BTC remains above $ 60,000 before the weekend. Ethereum reversed its direction after narrowly approaching its all-time high of $ 4,385, but is looking to regain bullish momentum with buyers defending $ 4,000.

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