Dollar slips against all seven majors; gold stays below $4,200

The dollar reversed Monday's across-the-board gains and closed lower against all seven majors on our feed, as Treasury yields and oil eased through the European morning. Gold came within $2 of $4,200 in Asian hours, then slid as yields turned back up, FXStreet said, and closed below that level for a 12th session in a row.

Yields, oil and the dollar

• A day after rising against all seven majors, the dollar closed lower against all seven on our feed. Action Forex said it weakened "broadly but modestly" as US Treasury yields extended their retreat, with the 10-year falling toward 5.19% from last week's 5.365% peak. FXStreet had the Dollar Index easing from its 18-month high.

• FXStreet said yields resumed their uptrend later in the session and erased the earlier losses, yet the dollar failed to advance.

• Oil eased through the European morning. WTI snapped a three-day winning streak and slid toward $91.00 as traders weighed Trump's decision to lift the ban on Russian diesel imports, FXStreet said, and investingLive's European wrap said risk sentiment improved as oil eased. Its Americas wrap, published just after the close, had oil rising again.

• Fed officials left the door open to one more hike. New York Fed President John Williams said "one more interest-rate hike is appropriate this year" but saw none in 2027, which FXStreet read as dovish Federal Reserve rhetoric. Boston Fed President Susan Collins said the Fed's main focus is inflation.

The euro, the pound and the loonie

• EUR/USD traded below 1.1159, the level Action Forex had flagged in our weekly wrap, only in the session's first four hours. From the 01:00 UTC hour it held above it, peaked at 1.12046 at 13:36 UTC and closed at 1.11987, up 0.39%: back above the break, but a fifth close in a row below 1.1215.

• ING lowered its year-end EUR/USD target to 1.13 and saw a possible test of 1.110 on a France-related risk premium, FXStreet reported. Action Forex said the French 10-year OAT-swap differential held near 130 basis points, a different gauge from the French-German gap our weekly wrap paired with 1.1159, and had stopped widening.

• The pound kept its low just above 1.3200 on our feed and climbed to 1.32592 at 18:56 UTC, closing at 1.32551, up 0.36%. After the close FXStreet said GBP/USD was in a third straight week inside a range of roughly 1.3200–1.3300 it has held since 24 September. Earlier in the session, FXStreet said investors seemed confident the Bank of England would raise rates in November, and policymaker Megan Greene had warned of second-round effects if the Bank acted late.

• USD/CAD fell 0.46% to close at 1.42150, after a low of 1.42036 at 15:28 UTC: the dollar's largest loss of the seven on our feed. Its session high, 1.42836 at 21:15 UTC on Monday, minutes after the session opened, stayed short of 1.43, the level Rabobank flagged in our weekly wrap.

Gold, the yen and the Aussie

• Gold climbed to $4,198.49 at 05:06 UTC on our feed, less than $2 short of $4,200, then slid to $4,146.82 at 17:52 UTC as Treasury yields resumed their climb, even as the dollar faced headwinds, FXStreet said. It closed at $4,163.33, down 0.14%, its 12th session close in a row below $4,200.

• USD/JPY dipped to 157.832 at 08:56 UTC and closed at 158.325, down 0.18%: the dollar's smallest loss of the seven on our feed. Scotiabank linked the yen's firmer tone to comments from Bank of Japan Governor Kazuo Ueda and Prime Minister Sanae Takaichi on close US-Japan FX contact, FXStreet reported. After the close FXStreet said the Bank of Japan was reported to be leaning against an October rate hike.

• The Reserve Bank of Australia's minutes of its September meeting were hawkish, FXStreet said, yet the Australian dollar traded lower against every major but the US dollar in the European session. AUD/USD closed at 0.69823, up 0.33%.

Market gauges and what's next

Our proprietary metrics at the close of the session:

• Readings: an MRS of 62, with its news component at its full 20. A CTS of 54 with its carry backdrop at 60, and an FSI of 55, Neutral, from 57 on Monday.

• Top of our strength table: the yen, first for 20% of the session's 1,424 minutes, a clear lead.

• Bottom: no currency clearly trailed.

• The yen: the table counts minutes in each place, not the session's net move. The yen spent the most minutes on top on a day the dollar lost less against it than against any other major.

• Last week's test: on our feed, gold never traded above $4,200 during the session and closed under it for a 12th session in a row. The wrap's tell stays open through today's US inflation data and the rest of the week.

Today: the US consumer price index is due at 12:30 UTC, with the calendar forecast at 3.6% for the annual headline rate, from 3.4%, and 0.2% for core prices on the month. US producer prices follow on Thursday, investingLive noted.