Following a 0.4% rally on Monday, the DXY Index decreased by 0.1%, currently trading below 103.90. Market experts expect the US dollar to follow a bullish pattern ahead of the Nov. 5 US elections.
The dollar rally, ongoing since the start of the month, has been supported by robust US fundamentals and a cautious tone from Fed officials. The DXY Index is close to the 104.00 barrier, not traded at since the beginning of August.
EURUSD is hovering around 1.0820 at the start of the day following bets for more ECB interest rate cuts and bullish USD.
As the single currency is reaching the 1.0800 neighbourhood, not seen since the beginning of August, the likelihood of further cuts will hinge heavily on macroeconomic trends.
ECB President Lagarde will be speaking today, along with other financial leaders at the IMF Meeting in the US.
GBPUSD is slightly above 1.30 this morning as the pair hangs in the balance ahead of BoE Governor Bailey’s keynote address later today.
The pivotal data point for this month will be the Autumn Budget on 30 October. The Chancellor of the Exchequer Rachel Reeves is aiming to rally confidence in herself and the new government’s abilities as the statement will cover spending, tax rises, pensions, and other financial hot topics.
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USDJPY is in the news this week as yen selling is increasing, leading to dollar strength. As US Treasuries continue to be sold, there is fresh pressure on the yen, leading to a break in the 150.00 psychological barrier, and moving past 151 at the start of the day.
