Here is what you need to know on Thursday, October 14:

Fluctuations in the US Treasury bond yields continue to drive the dollar’s valuation and the overall market mood stays cautiously optimistic on Thursday. The greenback is consolidating Wednesday’s losses as focus shifts to mid-tier data releases from the US – weekly Initial Jobless Claims and September Producer Price Index (PPI).

The US Dollar Index suffered its largest one-day loss since May on Wednesday, declining 0.54% as the benchmark 10-year US T-bond yield fell nearly 3% for the second straight day. However, the 10-year yield seems to have found its footing above the critical 1.5% level, supporting the dollar in the early European session on Thursday.

Macro data: The US Bureau of Labor Statistics reported on Wednesday that the Consumer Price Index (CPI) edged higher to 5.4% on a yearly basis in September from 5.3% in August. In the euro area, Industrial Production contracted by 1.6% as expected and the annual CPI in Germany remained steady at 4.1%. 

The Unemployment Rate in Australia ticked higher to 4.6% in September but this reading came in better than the market expectation of 4.8%. Chinese CPI surged to 10.7% in September from 9.5% in August. 

Wall Street: The S&P 500 Index gained 0.3% and the Dow Jones Industrial Average closed near its opening levels as investors shift their focus to key earnings reports. Citigroup and Wells Fargo are among the big names that will release third-quarter earnings before the opening bell on Thursday. US stock index futures are edging higher in the first half of the day.

Gold: XAU/USD capitalized on falling US yields and advanced to its highest level in nearly a month at $1,796 before going into a consolidation phase on Thursday.

EUR/USD rose decisively and erased all of October’s losses to turn positive for the month. Currently, the pair is moving sideways near 1.1600. However, it’s worth noting that EUR/USD was supported by the broad-based USD weakness rather than the euro’s strength.

GBP/USD continues to push higher toward 1.3700 as the UK evaluates the EU’s proposal on Brexit Northern Ireland Protocol.

USD/JPY managed to hold near the multi-year highs it set earlier in the week despite falling US T-bond yields and fluctuates in a tight channel around 113.50.

Cryptocurrencies: Following a short-lasting correction phase, Bitcoin regained its traction and climbed above $58,000 for the first time since early May. Ethereum is clinging to small daily gains around $3,600 while Ripple is struggling to find direction.