The US Dollar (USD) maintained its constructive tone on Thursday, advancing to two-month highs amid the lack of progress around the US government shutdown and always underpinned by the generalised risk-off sentiment in the FX universe.

Here’s what to watch on Friday, October 10:

The US Dollar Index (DXY) clinched its fourth day in a row of gains, markedly surpassing the 99.00 barrier to hit new multi-week highs against the backdrop of some widespread recovery in US Treasury yields. The preliminary U-Mich Consumer Sentiment gauge will take centre stage alongside speeches by the Fed’s Goolsbee and Musalem.

EUR/USD lost further ground and tumbled to multi-week lows near 1.1550, down for the fourth straight day. Germany’s final Inflation Rate and the Economic Sentiment gauge in Germany and the Euroland are next on tap on the domestic calendar on October 14.

GBP/USD extended its deep retracement, revisiting the area of two-month troughs below the 1.3300 support. The always relevant UK labour market report will be the next significant data release across the Channel on October 14.

USD/JPY hit new eight-month highs past the 153.00 hurdle, up for the sixth consecutive day. Japanese Producer Prices and Bank Lending figures are due.

AUD/USD followed the rest of its risk-associated peers and faded Wednesday’s uptick, retreating well south of the 0.6600 mark. The RBA’s Bullock and Kent will speak in an otherwise empty docket in Oz.

WTI prices reversed four daily gains in a row, coming under fresh selling pressure and approaching the $61.00 mark per barrel as traders assessed the alleviated geopolitical concerns and the latest larger-than-expected build in US crude oil inventories.

Gold prices traded on the back foot, receding sharply from their recent record highs and returning to the area below the $4,000 mark per troy ounce on the back of geopolitical uncertainty, the stronger US Dollar, profit taking, and Fed rate cut bets. Silver prices broke above the $51.00 mark per ounce for the first time in history, although that move lost traction afterwards, leaving the metal with marginal gains for the day.