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TDUX
Oct 27 - 04:55 PM
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EUR/USD - US Recap: EUR/USD Heads For New 2026 Closing Low As Dollar Rally Continues

By Editing by Burton  —  Oct 27 - 03:08 PM

The dollar rose against most of its G10 peers on Tuesday as buoyant risk sentiment and upbeat US data lifted Treasury 2-year yields ahead of Wednesday's FOMC policy decision.

Meta Platforms raised its equity offerings to a record $97.5 billion, with the common stock offering five times oversubscribed, Bloomberg reported.

Durable goods orders rose 1.8% in September, while stronger-than-expected August home prices, firmer October regional Fed surveys and higher weekly Redbook sales underscored resilient US domestic demand.

Oil prices eased as optimism over Middle East peace efforts offset concerns about Strait of Hormuz shipping risks and Houthi attacks on Saudi Arabia facilities.

Qatar said Iran must demonstrate good intentions for mediation efforts to succeed following talks in Tehran.

The dollar index continues to trend higher in light turnover after clearing its 21-DMA at 101.99, with risk reversals showing growing demand for dollar upside across maturities.

EUR/USD was pressured below its 10- and 21-DMAs amid firmer Treasury yields, exposing its 1.1135 lower Bollinger after slipping under the 1.1140 level.

GBP/USD drifted lower, but light pre-event positioning ahead of the UK Budget and Fed meeting, coupled with expectations for a November BoE hike, helped anchor the pair above 1.3300.

USD/JPY held a firm tone near the 21-DMA at 157.90, with a break above 158.00 targeting the cloud top at 158.44 and 200-DMA at 158.55, while a drop below the Tenkan-sen at 157.32 would expose the lower end of the 156.98-158.89 Bollinger range.

AUD/USD was supported above 0.70 by firmer CNH and metals, ending just below its 0.7040 high and 100-DMA ahead of Australian CPI, while AUD/NZD edged higher into an RBNZ decision.

USD/CAD moved above its 100-DMA at 1.4046 ahead of Wednesday's Bank of Canada decision, recovering after Friday's brief break below 1.4000

Treasury yields rose as much as 2 basis points as the curve flattened. The 2s-10s curve dipped 1 basis point to +25.7bp.

The S&P 500 rose 0.52%, fueled again by tech shares.

WTO oil fell 1.8%, dipping below $100/bbl.

Gold rose 0.99% while copper gained 1.73%.

Heading toward the close: EUR/USD -0.33%, USD/JPY +0.28%, GBP/USD -0.22%, AUD/USD +0.16%, DXY +0.34%, EUR/JPY -0.04%, GBP/JPY +0.09%, AUD/JPY +0.44%.(Editing by Burton Frierson Robert Fullem is a Reuters market analyst. The views expressed are his own)

Source:
London Stock Exchange Group | Thomson Reuters
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