Forecasts & Analysis | Currencies

Volatility could be the name of the game over the next few days due to the protests in China, speeches from Fed officials including Jerome Powell, and top-tier economic data.

Following Monday’s reversal, the GBP to USD found early support today. The risk-on sentiment was key ahead of BoE speeches later today.

Both the Aussie and Kiwi are firming after mainland China reported the first decline in daily COVID infections in more than a week on Monday.

There was little growth in retail sales from Sept., however, as Japanese households were squeezed by inflation running at its fastest pace in 40 years.

The AUDUSD’s gains are being capped amid rising risk aversion, as stringent virus curbs in China triggered clashes in many cities, including Beijing.

It is a busy day ahead for the EUR/USD, with member state inflation, Eurozone consumer and business confidence, and ECB chatter in focus.

The EUR/USD sold off after St. Louis Fed President Bullard said that Fed needs to raise interest rates quite a bit further and then hold them there.

EUR/USD made an attempt to settle above 1.0500. AUD/USD settled below the 0.6700 level.

In today’s analysis, I’ll cover other parts of the current puzzle: gold, the USD Index, and the stock market.

The US dollar has bounced a bit from a trendline against the Japanese yen yet again on Monday.