Forex Today: Gold Dips, Dollar Steady Ahead of Powell
Here’s what you need to know on Tuesday, October 14:
Markets are calmer early Tuesday following Monday’s sharp swings, as traders look ahead to remarks from Federal Reserve Chair Jerome Powell and key business sentiment data from Germany and the United States.
Powell will deliver a speech on Economic Outlook and Monetary Policy at the National Association for Business Economics (NABE) Annual Meeting in Philadelphia — a key event that could shape expectations for future rate moves.
U.S. Dollar Steadies as Risk Mood Sours
The U.S. Dollar (USD) rebounded on Monday, recovering from last week’s sell-off as investors reassessed the latest U.S.–China trade headlines.
President Donald Trump recently warned of potential 100% tariffs on Chinese imports, though Treasury Secretary Scott Bessent later noted that such measures “don’t have to happen,” hinting at room for negotiation.
Wall Street rallied sharply, with major indices ending higher, while the U.S. Dollar Index (DXY) climbed 0.4%, erasing much of Friday’s losses.
By early Tuesday, the DXY held above 99.00, even as U.S. stock index futures dipped between 0.5% and 1%, signaling renewed caution.
China’s Commerce Ministry fired back, urging Washington to “correct its wrong practices” and criticizing the use of intimidation tactics. The standoff has kept global risk sentiment fragile, supporting the dollar’s near-term strength.
RBA Minutes Pressure the Aussie; Pound Slips After Labor Data
The Reserve Bank of Australia (RBA) minutes from September showed policymakers remain cautious, noting policy may still be “slightly restrictive” amid global uncertainty.
The AUD/USD pair extended its losses, dropping to its lowest level since late August near 0.6470.
In the UK, the Office for National Statistics (ONS) reported that the unemployment rate ticked up to 4.8% in the three months to August, while job gains slowed to +91K from +232K previously.
The GBP/USD pair remains weak, trading below 1.3300 as traders brace for potential dovish commentary from Bank of England officials later this week.
Yen Finds Support as Japan Warns on FX Moves
Japanese Finance Minister Katsunobu Kato reiterated concerns over “one-sided and rapid” moves in the yen, stressing the need for stability in foreign exchange markets.
The USD/JPY pair briefly rose during the Asian session but later reversed, slipping below 152.00 as traders grew cautious about possible intervention.
Meanwhile, EUR/USD remains range-bound below 1.1600, with focus turning to French Prime Minister Sébastien Lecornu’s upcoming budget proposal — expected to include €31 billion in spending cuts.
Gold Retreats After Record Rally
Gold (XAU/USD) surged more than 2% on Monday, closing above $4,110 for the first time ever as investors sought shelter from geopolitical and trade uncertainty.
However, after touching a new record high near $4,180 early Tuesday, the metal saw profit-taking, easing back toward $4,130 ahead of Powell’s remarks.
U.S. Dollar Performance This Week
| EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|
| USD | +0.46% | +0.63% | -0.02% | +0.44% | +0.69% | +0.86% | +0.36% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is from the top row.
