Investors’ focus remains on US inflation

Lingering US CPI data and dodgy comments from Fed officials provided further support for the greenback on Thursday ahead of the release of additional inflation figures later in the week.

Here’s what you need to know on Friday, October 11:

The US dollar index ( DXY ) breached the 103.00 barrier to hit fresh two-month highs as market participants adjusted to bullish bets on a 25bps rate cut in November. US inflation will remain at the center of the debate with the release of producer prices supported by preliminary Michigan Consumer Sentiment and speeches by Goolsbee and Bowman from the Fed.

Downward pressure in EUR/USD gathered further pace, briefly sending the pair to sub-1.0900 support. Germany’s final inflation rate is in the spotlight, seconded by current account results.

Further gains in the greenback saw GBP/USD extend its leg lower and trade just pips from the key 1.3000 support. Interesting day in the UK ledger with the release of figures for GDP, merchandise trade balance, industrial output, manufacturing output, construction output and NIESR’s monthly GDP monitor.

USD/JPY partially pared Wednesday’s advance shortly after hitting new highs around 149.50. The next entry on the Japanese file will be the industrial production figures on October 15.

AUD/USD outperformed its risky peers and advanced modestly after five straight daily pullbacks. The Westpac Leading Index and the RBA hunter’s speech are scheduled for October 16.

WTI prices rose sharply on lingering geopolitical concerns and hopes of a demand recovery in China and the US.

Gold prices reversed a multi-day losing streak and regained the region of $2,630 per troy ounce after briefly reaching near $2,600. Silver prices snapped three straight daily losses and rallied strongly above the $31.00 per ounce mark.