The US Dollar (USD) surged to new highs on Wednesday, driven by stronger-than-expected US inflation data for September. This data reignited speculation about additional interest rate hikes by the Federal Reserve in the fourth quarter of 2023. The US Dollar Index (DXY) rose to levels just below 103.00, a mark not seen since April 2025.
Key economic releases for the day include Initial Jobless Claims, Producer Prices, Retail Sales, and the Philly Fed Manufacturing Index. Additionally, speeches by Federal Reserve officials Bowman and Hammack are scheduled.
The Euro (EUR/USD) hit 17-month lows near 1.1100, while the British Pound (GBP/USD) dropped below 1.3240, marking levels last seen in November 2025. The UK will release GDP figures and other economic data, with speeches by Bank of England officials Pill and Woods.
The Japanese Yen (USD/JPY) climbed towards 159.00, reaching fresh monthly peaks. In Australia, the AUD/USD pair retreated to the mid-0.6900s after failing to sustain gains above 0.7000.
Front-month WTI crude oil futures approached $96.00 per barrel, supported by concerns over Iran’s actions in the Strait of Hormuz. Meanwhile, gold prices fell below $4,100 per troy ounce, hitting two-month lows amid a stronger US Dollar and rising Treasury yields.