GBP/USD drops during the North American session on Tuesday after failing to clear the 50-day Simple Moving Average (SMA) of 1.3464, as the US Dollar registers gains amid the ongoing US government shutdown.
West Texas Intermediate (WTI) Crude Oil edges lower on Tuesday, giving back the previous day’s gains as traders weigh the modest OPEC+ production hike against persistent oversupply concerns and subdued global demand.
The Euro (EUR) is down 0.3% against the US Dollar (USD) and showing signs of renewed weakness as it pushes back toward Monday’s lows in the mid-1.16s, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Gold remains steady right below all-time highs, at $3,973, supported by a cautious market mood on Tuesday. The precious metal is trading right below $3,960 during the European morning trading, with downside attempts held above $3,940
US Dollar (USD) is expected to trade in a range between 7.1340 and 7.1480. In the longer run, upward momentum is starting to build; for a continued advance, USD must first break clearly above 7.1480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) could continue to rise; any advance is likely part of a higher range of 149.70/150.70. In the longer run, the price action suggests USD could continue to rise and test the significant resistance zone of 150.90/151.20, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The slight increase in upward momentum is likely to lead to New Zealand Dolla (NZD) trading in a higher range of 0.5810/0.5850. In the longer run, NZD has likely moved into a 0.5770/0.5865 range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The US Dollar Index (USD) has gone a little bid this week – largely down to the weakness in the yen, which has a 14% weight in the DXY. At the same time, the dollar is an expensive short position given its 4.15% per annum one-week interest rate.
EUR/JPY edges lower after registering more than 1.5% gains in the previous session, trading around 176.00 during the European hours on Tuesday. The technical analysis of the daily chart indicates strengthening of a bullish bias as the currency cross remains above the ascending channel pattern.
The underlying tone appears to have firmed somewhat; Australian Dollar (AUD) may edge higher, but any advance is likely part of a higher range of 0.6595/0.6630.
USD/JPY stays better bid, as market partially pare back Oct hike expectations. Etsuro Honda, who advises PM-to-be Takaichi said that a rate hike in October is probably difficult.
The latest reports suggest President Macron has given the outgoing Prime Minister Sebastien Lecornu until Wednesday evening to try and work with a fractured parliament to find a new prime minister.
US Dollar (USD) traded subdued overnight in absence of key data. DXY last seen at 98.38 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
France's short-lived prime minister, Sebastian Lecornu, resigned unexpectedly yesterday morning. His time in office was even shorter than that of Liz Truss, the former British Prime Minister, who was forced to resign after seven weeks due to her ill-fated financial plan for Britain.
There is scope for Euro (EUR) to test the late-Sep low of 1.1645; it is unclear at this point if it can break clearly below this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) slipped yesterday on news that French PM Lecornu resigned after less than 1 month on the role. Pair was last at 1.1677 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
In the early hours on Wednesday, the Reserve Bank of New Zealand will meet again to make a monetary policy decision and is likely to cut interest rates by another 25 basis points.
Silver price (XAG/USD) retreats after reaching the new 14-year high of $48.77 reached in the previous session, trading around $47.90 per troy ounce during the early European hours on Tuesday.
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