Support
USD/JPY climbs, eyes on Japan's response.
Today's focus includes the US Crude Oil inventory report, ECB speeches, and major corporate earnings
Gold prices are regaining upward momentum
The USD/JPY pair surged above 150 level
WTI remains close to a three-week low
Currencies
The USD/JPY pair surged on Monday, surpassing the key 150.00 threshold to reach fresh highs, sparking immediate speculation about possible intervention from Japan. The pair broke the resistance of 150, marking a rise of over 150 pips from its Asian session lows, driven by a combination of factors that pressured the yen against the dollar.
This sharp movement is set against a backdrop of increased political uncertainty in Japan, where recent polls indicate the potential for a minority coalition government following the upcoming October 27 election. The political instability adds further pressure on the yen, as the market assesses possible implications for the Bank of Japan's future monetary policy.
Commodities
Gold is regaining positive traction on Tuesday, inching closer to its all-time high as it approaches the European session. The uncertainty surrounding the U.S. Presidential election on November 5, alongside concerns about a wider Middle East conflict and anticipated interest rate cuts by major central banks, continues to provide support for the safe-haven asset.
West Texas Intermediate (WTI) Crude Oil prices are struggling to build on the previous day's modest gains, fluctuating within a narrow range of $69.70-$69.75 during Tuesday's Asian session. The commodity remains close to a nearly three-week low, seen last Friday, and appears vulnerable to extending its recent downtrend, which has persisted over the last two weeks.
Economic Calendar
Today's economic highlights include the US Crude Oil inventory report, speeches from several ECB officials, and key corporate earnings announcements. The BRICS Summit, along with central bank communications and quarterly results from major U.S. firms such as General Motors and Verizon, will be under close observation.
Oil inventory data is also anticipated later in the day. Attention remains on the U.S. presidential race, now two weeks away, with polls showing a close contest between Donald Trump and Kamala Harris, leading to expected market volatility as the election date nears.
