The dollar continued its downtrend on Tuesday as traders awaited the Federal Reserve’s October meeting minutes and US Existing Home Sales data. The anticipation follows Monday’s market sentiment that saw a weakened USD across major currencies, with the USD Index falling below August lows to under 104.00, influenced by a drop in US Treasury yields below 4.4%.
The Canadian dollar is also in focus, with projections suggesting a decrease in the Canadian October CPI to an annual rate of 3.2%, down from September’s rate of 3.8%. This potential decline comes ahead of the release of Canadian inflation statistics, where the pair traded just above the 1.3700 mark.
Meanwhile, the Australian dollar saw strong gains against the US dollar, nearing early August highs around 0.6600. This came after the Reserve Bank of Australia’s discussions on interest rate hikes to counter inflation threats.
In Europe, comments from a European Central Bank Governing Council member hinted at stable future interest rates, which pushed the pair modestly above 1.0950. Concurrently, the pair climbed past a two-month high of over 1.2540, and the approached mid-September lows around 147.50.
Investors are closely monitoring these currency movements as they reflect broader economic trends and central bank policies affecting global markets.
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