The US Dollar is on a roll, reaching six-month highs as traders anticipate the Federal Reserve's next move. With growing expectations of a hold in December, the USD is in high demand. However, the ongoing government shutdown in Washington adds a layer of uncertainty.
The focus now shifts to the ISM Services PMI, as the US Dollar's trajectory hangs in the balance.
On Wednesday, November 5, we'll witness the US Dollar Index continuing its upward trend, surpassing the 100.00 mark. Key economic indicators to watch include the MBA Mortgage Applications, ADP Employment Change, and the ISM Services PMI.
The EUR/USD pair has weakened significantly, breaking below the 1.1500 support level. Germany's Factory Orders and the Services PMI for both Germany and the Eurozone will provide further insights.
The British Pound is under pressure, with GBP/USD hitting fresh lows. The final S&P Global Services PMI for the UK will be a crucial indicator.
USD/JPY traded defensively, retreating from recent gains due to risk-off sentiment. Japan's Average Cash Earnings and the Reuters Tankan Index will be closely watched.
AUD/USD fell to multi-day lows, impacted by the RBA's steady approach and the strong USD.
WTI crude oil prices remain within a range, influenced by oversupply concerns and the strengthening US Dollar.
Gold prices took a hit, dropping to the $3,930 zone, as bets on a Fed rate cut in December diminish. Silver prices followed a similar downward trend.
But here's where it gets controversial: Will the ISM Services PMI data provide enough clarity for traders, or will it further fuel the uncertainty surrounding the US Dollar's future? And this is the part most people miss: The impact of the government shutdown on economic indicators could be a game-changer.
What do you think? Will the USD continue its upward trajectory, or are we in for a surprise? Share your thoughts in the comments!
