The greenback resumed its advance on Wednesday, with the US Dollar Index seemingly completing a modest bearish retracement from 104.50 down to 104. Market participants are holding off on broad profit-taking in the USD due to uncertainties surrounding the upcoming US elections, which maintain significant upside risks for US fixed-income yields and, by extension, the dollar. Furthermore, expectations of strong US economic data releases—which could challenge the disinflation trend and signal a less pronounced easing in the labor market—are making bearish bets against the USD unattractive at the moment:

Today's release of the Consumer Confidence Index and the JOLTS Job Openings figures will provide valuable insights into consumer sentiment and labor market conditions. An improvement in consumer confidence to an expected 99.5 could signal increased consumer spending, a primary driver of GDP growth. Similarly, sustained high levels of job openings near 8 million suggest that the labor market remains tight, which could exert upward pressure on wages and inflation.

The preliminary US Q3 GDP data, scheduled for release on Wednesday, is anticipated to show a robust annualized growth rate of 3%. This strong figure highlights the US economy's resilience and makes it stand out among its major counterparts.

While the Nonfarm Payrolls report on Friday is expected to reveal a slower increase in employment compared to the previous month, the overall strength of the labor market remains a key factor for the Federal Reserve.

Recent strong US economic data have led markets to reassess expectations for the Federal Reserve's interest rate path. Although interest rate derivatives suggest a near-certainty of a 25 basis point cut in November and more than a 70% chance of another cut in December, robust economic indicators could prompt the Fed to adopt a less dovish stance. Higher interest rates typically support the US Dollar by attracting foreign capital seeking higher yields, which could further bolster the DXY.

Gold has pushed higher into the $2,750s per ounce, benefiting from a confluence of factors:

- The recent 6% drop in Brent crude prices, driven by geopolitical developments in the Middle East, has eased concerns over energy-driven inflation. Lower oil prices reduce costs across various economic sectors, potentially accelerating the decline in global inflation rates;

- With uncertainties surrounding global economic growth and geopolitical tensions, investors are increasing allocations to safe-haven assets like gold. The prospect of lower real interest rates enhances gold's appeal, as it reduces the opportunity cost of holding a non-yielding asset.

A near-term technical buying target for gold is the upper bound of its ascending corridor, which is located roughly near $2,800 per troy ounce:

The Pound Sterling is trading cautiously, remaining locked in a tight triangle between the 1.30 horizontal resistance and an ascending support line:

Major upcoming fundamental events—such as the UK's Autumn Forecast Statement slated for Wednesday and US labor market data—are prompting investors to adopt a wait-and-see stance. Regarding the fiscal announcement, it is expected to play a crucial role in shaping the Bank of England's monetary policy. Expansionary fiscal policies could necessitate tighter monetary policy to counter inflationary pressures, while austerity measures might allow for a more accommodative stance.

Market consensus indicates that the Bank of England is poised to cut interest rates by 25 basis points to 4.75% in its November 7 meeting, marking the second rate cut this year. The central bank's decisions will significantly influence the Pound's valuation against major currencies.