Here's what you need to know on Tuesday, October 15th.
After a quiet start to the week, the U.S. dollar (USD) has gained momentum, with the U.S. dollar index rising above 103.00 on Monday, its highest level since early August, and managing to build on last week's gains. No high-level data will be released on Tuesday on the U.S. economic calendar. Eurostat will release industrial production statistics for August, and Germany's ZEW Economic Research Institute will release sentiment data for the euro area and Germany for October. Finally, Statistics Canada is scheduled to release September consumer price index numbers later in the U.S. meeting. Several Federal Reserve policymakers are scheduled to speak later in the day.
USD PRICE Last 7 days
The table below shows the percentage change of the US dollar (USD) against major listed currencies over the past 7 days. The US dollar was the strongest against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.74% | 0.28% | 0.78% | 1.38% | 0.69% | 0.77% | 0.92% | |
| EUR | -0.74% | -0.46% | 0.03% | 0.64% | -0.05% | 0.00% | 0.17% | |
| GBP | -0.28% | 0.46% | 0.49% | 1.09% | 0.42% | 0.47% | 0.64% | |
| JPY | -0.78% | -0.03% | -0.49% | 0.72% | -0.08% | -0.03% | 0.16% | |
| CAD | -1.38% | -0.64% | -1.09% | -0.72% | -0.68% | -0.60% | -0.45% | |
| australian dollar | -0.69% | 0.05% | -0.42% | 0.08% | 0.68% | 0.06% | 0.23% | |
| new zealand dollar | -0.77% | -0.01% | -0.47% | 0.03% | 0.60% | -0.06% | 0.17% | |
| swiss franc | -0.92% | -0.17% | -0.64% | -0.16% | 0.45% | -0.23% | -0.17% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select USD from the left column and move along the horizontal line to Japanese Yen, the percentage change displayed in the box represents USD (base)/JPY (estimate).
Japanese data released on Tuesday showed industrial production fell 3.3% on a monthly basis in August, in line with market expectations. Meanwhile, Kyodo News reported that Prime Minister Shigeru Ishiba said the government aims to compile a supplementary budget for this fiscal year that is expected to exceed last year's 13.1 trillion yen ($87.6 billion). After recording a small profit on Monday, USD/JPY The edge fell early on Tuesday, trading below 149.50.
euro/usd It turned south in U.S. trading on Monday, falling below 1.0900 for the first time in more than two months. The pair has struggled to maintain its position during European morning hours and remains below this level.
US dollar/Canadian dollar On Monday, he extended his winning streak to nine consecutive business days. Ahead of Canada's inflation report, it is clinging to a small daily gain, just above 1.3800 early Tuesday.
The Office for National Statistics said on Tuesday that the ILO unemployment rate had fallen to 4.0% in the three months to August, following 4.1% in July. Additional details in the report showed employment change data for August reached 373,000 jobs, compared to 265,000 reported in July. Furthermore, average earnings excluding bonuses in the UK increased by 4.9% in August compared to 3 months ago, compared to 5.1% in July. GBP/USD did not react immediately to these numbers and was last seen moving sideways around 1.3050.
gold Monday ended the day largely unchanged, with no decisive move in either direction. XAU/USD expanded sideways around $2,650 in the European morning.
Frequently asked questions about inflation
Inflation measures the increase in the price of a representative basket of goods and services. Headline inflation is typically expressed as a percentage change on a month-over-month (MoM) and year-over-year (YoY) basis. Core inflation excludes more volatile components such as food and fuel, which can fluctuate due to geopolitical and seasonal factors. Core inflation is the number that economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level (usually around 2%).
The Consumer Price Index (CPI) measures the change in the price of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-over-month (MoM) and year-over-year (YoY) basis. Core CPI is a central bank target that excludes volatile food and fuel inputs. If core CPI rises above 2%, interest rates typically rise, and vice versa when it falls below 2%. A rise in interest rates is good for the currency, so a rise in inflation usually results in a rise in the currency. The opposite is true when inflation falls.
It may seem counterintuitive, but when a country's inflation rate is high, the value of its currency increases, and vice versa when its inflation rate is low. This is because central banks typically raise interest rates to combat rising inflation, which increases global capital inflows from investors looking for favorable places to park their money.
Previously, gold was an asset that investors looked to during times of high inflation because it maintained its value. Investors still often purchase gold as a safe-haven asset during times of extreme market turbulence, but this is not the case in most cases. . When inflation rises, central banks raise interest rates to counteract it. Rising interest rates are negative for gold because they increase the opportunity cost of holding gold as an interest-bearing asset or in a cash savings account. Conversely, lower inflation tends to be positive for gold as it lowers interest rates, making the bright metal a more viable investment option.
