The US dollar faced profit-taking and lost momentum in line with a slight pullback in US yields, as risk sentiment improved slightly. Meanwhile, business activity in Europe for October remains lackluster, showing few signs of recovery.
Here’s what you need to know on Friday, October 25:
The US Dollar Index (DXY) saw a sharp reaction on Thursday, retreating from recent highs beyond the 104.00 barrier. Durable goods orders will be released, followed by the final Michigan Consumer Sentiment data.
After bottoming around 1.0760, EUR/USD regained some footing and broke the key barrier of 1.0800. Germany’s Business Climate as measured by the IFO institute will be the focus in Europe ahead of Consumer Inflation Expectations and the ECB’s M3 Money Supply figures. In addition, McCaul’s speech from the ECB is expected.
GBP/USD put three consecutive days of losses behind it and approached the key 1.3000 level amid decent gains. GfK Consumer Confidence will take center stage at the end of the week on the other side of the Channel.
Selling pressure on the Dollar and lower US yields weighed on USD/JPY, sending it back below 152.00. The final Coinciding Index and the Leading Economic Index are next on the agenda, followed by the Tokyo CPI figures.
AUD/USD ended the session with marginal gains following weakness in the US Dollar. Next on the agenda in Australia will be the release of the RBA Monthly CPI Indicator on October 30.
Demand concerns coupled with uncertainty surrounding upcoming elections in the US and the Middle East weighed on crude oil prices and dragged the US WTI barrel below the $70.00 per barrel mark.
Gold prices regained some of the ground lost in the previous session and retested the area above the $2,730 per troy ounce mark, helped by the selling tone in the Dollar and declining US yields. Silver prices traded volatile, alternating gains and losses around the $33.60 area.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
