Forex Today: Advanced PMIs in the limelight, but what about the UN General Assembly?
The US Dollar (USD) has extended its recovery on Tuesday, climbing to new multi-week highs on the back of steady bets for extra Fed tightening, while increasing hopes of a potential deal to unlock the US-Iran-Hormuz conflict seem to have been ignored by market participants.
On Tuesday, the US Dollar (USD) experienced a resurgence, reaching fresh multi-week highs, driven by expectations of ongoing Federal Reserve tightening measures and optimism surrounding the prospect of a resolution to the US-Iran-Hormuz conflict. The US Dollar Index (DXY) reached new two-month peaks, breaking above the psychological 100.00 barrier amidst mixed signals in US Treasury yields across the yield curve.
Market participants are anticipated to closely scrutinize the preliminary S&P Global Manufacturing and Services PMIs for the month of September, alongside speeches by the European Central Bank's Vujcic and Lane. The GBP/USD pair weakened to levels last seen in late July, around 1.3320, as investor sentiment toward the Greenback strengthened.
USD/JPY gained ground for the third consecutive day, surpassing the 157.00 barrier. As the U.S. Dollar continues to exhibit a bullish sentiment due to the Federal Reserve's hawkish outlook and Middle East tensions, gold has rebounded, trading near key levels and demonstrating resilience despite the strengthening US Dollar and mixed US Treasury yields.
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