Gold (XAU/USD) trims earlier losses on Tuesday, trading around $3,848 at the time of writing. The metal is clawing back gains after sliding from its fresh all-time high near $3,871 to the $3,800 zone, as buyers stepped back in following the release of weaker US Consumer Confidence data.
Silver (XAG/USD) has snapped a three-day rally on Tuesday, as the pair failed to consolidate at levels beyond $47.00, and retreated to session lows below $45.80, before returning to levels right above the $46.00 line
There is scope for US Dollar (USD) to test 7.1165 before the risk of a recovery increases. In the longer run, for the time being, USD is likely to trade in a range between 7.1000 and 7.1480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The ongoing trade conflict is making things increasingly difficult for Switzerland. On Thursday night, the US President announced on social media that a 100% tariff would apply to branded or patented medicines starting tomorrow.
EUR/USD is holding firm near 1.1760 as softer USD and stabilizing Eurozone inflation underpin the single currency, with attention turning to Germany’s CPI release and Lagarde’s remarks, BBH FX analysts report.
New Zealand Dollar (NZD) is likely to consolidate between 0.5765 and 0.5790. In the longer run, the outlook for NZD remains negative; the next level to watch is 0.5730, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
There is a chance for Pound Sterling (GBP) to test 1.3465; major resistance at 1.3525 is unlikely to come under threat. In the longer run, GBP is likely to trade in a range between 1.3360 and 1.3525, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
AUD/USD is consolidating after September’s rejection at a key multiyear trend line, with the 50-DMA offering support and defining the near-term range, Société Générale's FX analysts note.
The US Dollar (USD) is set to continue weakening in the coming months. However, what is particularly interesting are the explanations other analysts offer for their respective forecasts. Recently, one argument has surfaced repeatedly: the increasing demand for hedging against USD weakness.
Euro (EUR) is likely to trade in a range of 1.1700/1.1755. In the longer run, a clear break above 1.1760 would indicate that EUR could trade above last week’s low of 1.1645 for a while, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
It is now clear that the bar for a material FX reaction due to geopolitics is high, and the short-term fate of EUR/USD is predominantly an extension of US macro, ING's FX analyst Francesco Pesole notes.
USD/CAD trades around 1.3910 during the European hours on Tuesday, remaining steady after registering losses in the previous session. The technical analysis of the daily chart suggests that the pair remains within an ascending channel pattern, suggesting that a prevailing bullish bias.
EUR/JPY extends its losses for the second successive session, trading near 174.00 during the Asian hours on Tuesday. The currency cross remains subdued ahead of German Retail Sales, Unemployment, and flash Consumer Price Index (CPI) data from Germany due later in the day.
Silver (XAG/USD) remains confined in a range near its highest level since May 2011, touched the previous day, and trades just below the $47.00 mark during the Asian session on Tuesday.
UBS said a U.S. government shutdown would block the release of key economic data, but expects the Fed to press ahead with a 25bp cut in October, relying on private surveys and its own data to guide policy.
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