Forex Today: Market steady ahead of inflation updates
18.10.2022, 20:08

Forex Today: Market steady ahead of inflation updates

What you need to take care of on Wednesday, October 19:

The American Dollar finished Tuesday mixed across the FX board, not far from its daily opening levels. Financial markets lacked clear direction, as government bond yields remained steady, while macroeconomic data was mixed.

The main focus was once again on the United Kingdom. During London trading hours, the Financial Times suggested the Bank of England could delay the start of the quantitative tightening bond-selling program, sending the Pound up and adding pressure on the greenback. However, the BOE quickly denied the headline, saying it was “inaccurate.” As a result, the dollar ticked marginally higher but was unable to retain gains amid rising equities and stable government bond yields.

The GBP/USD pair seesawed with the headlines, ending the day with modest losses at around 1.1320. EUR/USD extended its weekly advance by a few pips to 0.9875 to settle around 0.9850.

The USD/JPY pair kept rallying and surpassed 149.00, its highest in over 30 years. It suffered a near-term knee-jerk during European trading hours, shedding some 100 pips before bouncing back. It is now trading at around 149.20. The 20-year Japanese government bond yield is up to its highest since 2015.

AUD/USD ticked higher, now battling with 0.6300, while USD/CAD also advanced and stands at 1.3740. The Loonie was affected by further slides in crude oil prices, with WTI now trading at around $82.40 a barrel. Gold was also under pressure but finished the day little changed at around $1,650 a troy ounce.

On Wednesday, the EU, the UK, and Canada will publish updated inflation data that could spur volatile moves.

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