Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk
US Dollar
US Dollar

With U.S. banks and the U.S. Treasury closed on Monday for the Columbus Day holiday, traders focused their attention on Europe and Asia. The U.S. Dollar rallied against a basket of currencies with support coming from a weaker Euro and safe-haven buying.

The Euro rose due to an escalation of tensions between the European Union and Italy. China’s Yuan weakened as Beijing’s move to spur more lending failed to ease concern about economic growth.

For the session, the December U.S. Dollar Index settled at 95.436, up 0.131 or +0.14%.

In a sign that the confrontation between Rome and the European Union is ready to escalate, Italian 10-year bond yields increased nearly 20 basis points to 3.60 percent, the highest level in 4 ½ years, while the Italian stock market fell to its weakest since April 2017.

In further evidence that Italy and the EU may be headed for a showdown, Italian Deputy Prime Minister Matteo Salvini, speaking at a media conference with French far-right leader Marine Le Pen, denounced European Commission President Jean-Claude Juncker and Economic Commissioner Pierre Moscovici as enemies of Europe.

In China, the People’s Bank of China (PBOC) announced a steep cut in the level of cash that banks must hold as reserves, marking the fourth such decrease this year. This attempt from Beijing to calm investor worries about the trade war between China and the United States didn’t work however, the Yuan ended at its lowest official close in seven weeks.

Asia Stock Markets

Asia markets were mixed on Tuesday, reflecting the two-sided trade in the U.S. markets the previous session. Japanese markets opened lower after Monday’s bank holiday. At 0316 GMT, the Nikkei 225 Index is trading 23564.91, down 218.81 or -0.92 percent. Australia’s S&P/ASX 200 is also down sharply at 6040.50, down 59.80 or -0.98 percent. China’s Shanghai Index is at 2718.30, up 1.79 or +0.07 percent.



Gold prices plunged on Monday due to the stronger U.S. Dollar. Another steep drop in U.S. equity markets sent investors flocking into the safe-haven dollar which led to a drop in foreign demand for dollar-denominated gold.

For the session, December Comex Gold settled at $1188.60, down $17.00 or -1.43%.

Last week, gold was supported by bids tied to weakness in emerging markets. However, gains were limited by higher U.S. interest rates and bond yields. Additionally, speculators cut their net short position in COMEX gold by 4,186 contracts to 73, 128 in the week to October 2.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.