US Dollar Hits New Multi-Week Highs Amid Fed Tightening Bets

The US Dollar has extended its recovery on Tuesday and is now at multi-week highs. The currency climbed further north of its psychological 100.00 barrier, hitting new two-month tops amid mixed tone in US Treasury yields across the curve.

The preliminary S&P Global Manufacturing and Services PMIs for the current month will be a key data release, followed by the weekly MBA Mortgage Applications and the EIA's weekly report on US crude oil inventories.

EUR/USD has come under extra selling pressure on Tuesday, adding to Monday's decline and clinching fresh multi-week lows near 1.1430. The advanced S&P Global Manufacturing and Services PMIs for September are due alongside speeches by the ECB's Vujcic and Lane.

GBP/USD has retreated to levels last seen in late July, around 1.3320, on the back of firm sentiment surrounding the Greenback. Across the Channel, market participants will closely monitor the release of the flash September S&P Global Manufacturing and Services PMIs.