Forex Today: US data and geopolitics hold the market’s attention

With its weekly correction proving difficult to reverse, the US Dollar (USD) has remained rangebound without a clear direction. Investors have continued to weigh geopolitical developments against a backdrop of subdued trading ahead of the Fed.

Weekly Initial Jobless Claims and the CB Leading Index are due for release. Meanwhile, the US Dollar Index (DXY) has fluctuated within a narrow 101.80-101.60 band, moving between gains and losses.

Against a broadly directionless FX backdrop, EUR/USD has edged lower towards the 1.1200 support zone. Attention on the domestic calendar now turns to the euro area's flash Consumer Confidence reading and a speech by the ECB’s Panetta.

A brief move above the 1.3400 barrier has left GBP/USD modestly higher on the day, extending Tuesday’s advance. Across the Channel, the forthcoming releases include the CBI Business Optimism Index and CBI Industrial Trends Orders.

Further selling has taken USD/JPY back below 158.00, extending the previous day’s fall. Japan’s weekly Foreign Bond Investment figures are next on the calendar.

A fourth consecutive daily advance has carried AUD/USD further beyond the 0.7000 threshold following its recent breakout. Australia’s next scheduled releases are the preliminary S&P Global Manufacturing and Services PMIs on October 23.

Persistent hopes for a diplomatic resolution to the US-Iran confrontation have accompanied renewed selling in front-month WTI futures, leaving prices within close reach of $96.00 per barrel.

Marginal US Dollar losses and mixed movements in US Treasury yields across the curve have been followed by a recovery in Gold. The precious metal has regained its footing, recording reasonable gains and once again testing $4,150 per troy ounce.