- The greenback resumes yesterday’s gains ahead of today’s GDP print, where the US is set to post the strongest growth since 2021, which should put the Federal Reserve in a tough spot. US new home sales released on Wednesday jumped to the fastest pace since early 2022, adding that the Fed tightening cycle is taking its time to hit the real economy.
- The yen lost against the US Dollar, following a bullish impulse above the key level of 150, spiling across the rest of the G-10 peers. We are currently trading comfortably above 150.50. This move adds further pressure on the Bank of Japan to intervene in the currency market ahead of its policy meeting on the 31 Oct.
- It’s ECB Day, where we expect interest rates to be kept unchanged. ECB’s President, Christine Lagarde, stated in her speech that the battle against inflation is far from over, but that she remains confident that the 2% target is achievable. The euro trades at 1.0535, dropping 0.2% on the day following the USD/JPY aggressive move. EUR/USD is likely to struggle today, and it’s hard to see it above 1.05 much longer.
- Cable followed the crowd and it’s also lower, currently below 1.21 with some more downside in view.
- Oil jumped on Wednesday following news that Israel was going to initiate a ground invasion of Gaza, adding concerns that the conflict could accelerate and threaten global energy supply.
