FX Today: US Dollar hits 17-month high, RBA minutes and Fed speaking, up next
Buyers are stepping in and keeping the US Dollar (USD) bid due to safe-haven demand, as the resumption of hostilities in the Middle East and the exchange of strikes between Russia and Ukraine have pushed energy prices higher.
The US Dollar (USD) reached a 17-month high against most major currencies today, buoyed by safe-haven demand and hawkish comments from the Federal Reserve. The US Dollar Index (DXY) is trading at year-to-date highs of 102.60, poised to challenge the April 10, 2025 daily high of 103.30. The resumption of Middle East hostilities and tension between Russia and Ukraine have increased energy prices, contributing to the USD's strength.
Fed President Beth Hammack's hawkish remarks also fueled speculation about potential interest rate hikes from the Federal Reserve. Momentum remains bullish, with traders monitoring ADP Employment Change, housing data, and a speech by Fed Governor Waller for insights into the US jobs market. USD strengthened against the Swiss Franc, while EUR/USD fell to 17-month lows at 1.1154 due to a light economic calendar.
GBP/USD edged lower towards 1.3200, but may have bottomed out. USD/JPY hovered near 158.50 amid emptiness in the economic calendar, with traders wary of Japanese authorities' potential intervention. AUD/USD struggles to surpass 0.7000, and is pressured by the Reserve Bank of Australia's (RBA) October 13 meeting minutes. Gold remains under pressure around $4,200, with traders eyeing US data releases and Fed speakers.
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