FX Today: Attention remains on US-China trade and US shutdown

The US Dollar (USD) snapped a multi-day positive run, coming under renewed downside pressure after hitting fresh weekly highs amid somewhat mitigated concerns on the US-China trade front, while the lack of news surrounding a deal to end the US federal government shutdown continued to prevail.

Here’s what to watch on Thursday, October 23:

The US Dollar Index (DXY) left behind three daily upticks in a row, breaching below the 99.00 support on the back of a poor performance of US Treasury yields across the curve. The Chicago Fed National Activity Index is due followed by Existing Home Sales.

EUR/USD regained some traction and reclaimed the area beyond the 1.1600 barrier, setting aside part of the recent weakness. The European Commission will release its advanced Consumer Confidence gauge, ahead of the speech by the ECB’s Lane.

GBP/USD retreated for the fourth consecutive day, flirting with the 1.3300 support before staging a decent comeback. The CBI Business Optimism Index and the CBI Industrial Trends Orders will be published, seconded by the speech by the BoE’s Hall.

USD/JPY ended the day with modest losses around the 151.80 region, reversing three consecutive daily advances. The weekly Foreign Bond Investment figures are due.

AUD/USD added to Tuesday’s decline, retreating marginally and revisiting the 0.6480 zone. The flash S&P Global Manufacturing and Services PMIs are due along with the speech by the RBA’s Bullock on October 24.

WTI rebounded sharply, hitting four-day highs near the $59.00 mark per barrel as traders assessed the fresh bout of optimism on the US-China trade front.

Gold briefly flirted with the area of two-week lows, coming close to the key $4,000 mark per troy ounce amid cooling tensions on the trade front and the firm tone in the US Dollar. Further weakness dragged Silver prices below the $48.00 mark per ounce, although they regained some composure afterwards.