FX Today: Inflation in China and Fedspeak should keep investors entertained

The US Dollar (USD) failed to extend its recovery despite the positive start to the day, eventually receding modestly amid the steady lack of progress around any shutdown deal and a persistent risk-off environment.

Here's what to watch on Wednesday, October 15:

The US Dollar Index (DXY) traded with decent losses after faltering once again around the 99.50 region amid declining US Treasury yields across the board and persistent risk aversion. The usual MBA Mortgage Applications are due, seconded by the NY Empire State Manufacturing Index and the API's report on US crude oil inventories. In addition, the Fed's Bostic, Miran, Waller, and Schmid are all due to speak.

EUR/USD gathered marked traction and almost fully recovered Monday's strong pullback, managing to reclaim the 1.1600 barrier and beyond. The Industrial Production figures in the broader Euroland will be the sole release on the domestic calendar. Further more, the ECB's De Guindos, Buch, and Donnery are due to speak.

GBP/USD sank to multi-week lows well south of the 1.3300 support, just to stage a strong combeack afterwards and end the day almost unchnaged in the low 1.3300s. The speeches by the BoE's Ramsden and Breeden will be the salient events across the Channel.

USD/JPY reversed Monday's uptick and returned to the 151.60 region, where some initial contention seems to have emerged. Industrial Production in Japan and Capacity Utilisation readings are next on tap in Japan.

AUD/USD resumed its steep correction and dropped to the 0.6440 region, rapidly setting aside Monday's small uptick. The Westpac Leading Index is due, alongside speeches by the RBA's Hunter and Kent.

WTI prices broke below the $58.00 mark per barrel for the first time since early May following US-China trade tensions and the IEA's projections for a surplus in the industry in 2026.

Fed rate cut bets and reignited trade concerns propelled Gold prices to all-time highs around $4,180 per troy ounce on Tuesday, adding to Monday's uptick and clinching their third consecutive daily advance. The softer tone in the Greenback and declining US Treasury yields across the curve also contributed to the bullish move in the precious metal. Silver prices followed suit, rising to record highs well north of the $53.00 mark per ounce.