FOREX TODAY: MARKETS CONTINUE TO MOVE SLOWLY AS THEY EVALUATE DATA AND GEOPOLITICS

What you should be aware of on Wednesday, October 18 is as follows:

The week's midpoint sees uneven activity on the financial markets as traders evaluate the most recent macroeconomic data releases and news stories pertaining to the Israel-Hamas conflict. On Wednesday, Eurostat will present updated Harmonized Index of Consumer Prices (HICP) data for September. Building Permits and Housing Starts data will be presented in the US economic docket throughout the second half of the day. Finally, the Beige Book will be released by the Federal Reserve.

Data from China during the Asian trading session showed that the third quarter's real Gross Domestic Product (GDP) increased at an annual pace of 4.9%. This reading exceeded market expectations for a 4.4% gain and followed the 6.2% growth seen in the second quarter. Other figures from China revealed that Industrial Production rose by 4.5% while Retail Sales rose by 5.5% annually. Both of these numbers exceeded analysts' predictions. In the Asian session, the AUD/USD and NZD/USD pairings also gained momentum, and they both ended the day up 0.4%.

CURRENT US DOLLAR EXCHANGE RATE

The US Dollar's (USD) percentage change this week relative to the main currencies listed is shown in the table below. In relation to the Australian Dollar, the US dollar was the weakest.

The heat map displays percentage changes between the major currencies. The quotation currency is chosen from the top row, while the base currency is chosen from the left column. If you choose the Euro from the left column and go to the Japanese Yen along the horizontal line, for instance, the percentage change shown in the box will be EUR (base)/JPY (quote).

Wednesday's meeting between Israeli Prime Minister Benjamin Netanyahu and US President Joe Biden is scheduled to take place in Israel. A conference between Jordan and US President Biden and Egyptian President Abdel Fattah el-Sisi has been postponed as a result of the news of an attack on the al-Ahli Arab Hospital in Gaza. Following an Israeli airstrike on the hospital, the Palestinian authorities reported that at least 500 people had died. Israeli Defense Forces Lt. Col. Jonathan Conricus refuted the assertion in an interview with CNN:

“We did not strike that, and the intelligence we have suggests that it was a failed rocket launch by the Islamic Jihad, and I want to add, categorically, that we do not intentionally strike any sensitive facilities, any sensitive facilities, and most definitely not hospitals.”

Following these developments, US stock index futures are unchanged for the day, while the 10-year US Treasury bond yield is stable at or above 4.8% following Tuesday's increase. The US Dollar Index, meanwhile, oscillates in a narrow band just above 106.00.

According to data released on Wednesday by the Office for National Statistics (ONS), the Consumer Price Index (CPI) change in the UK remained stable in September at 6.7% annually. In contrast to the 6.2% increase seen in August, the Core CPI, which excludes volatile food and energy costs, increased by 6.1% during the same time frame. The GBP/USD pair was last seen trading slightly higher on the day at approximately 1.2200. Its response to these statistics was mainly subdued.

Small gains were made in the EUR/USD on Tuesday, and it has since climbed steadily toward 1.0600 early on Wednesday.

The USD/JPY pair closed in the green on Tuesday, just above 149.50, but lost steam in the Asian session on Wednesday.

Positive Chinese statistics and rising geopolitical tensions in the middle of the week helped gold. At roughly $1,940, XAU/USD was recently spotted trading at its highest level since September 20.