Forex Today: US inflation, Fed's Powell take centre stage
|The Greenback kicked off the week on the back foot amidst the generalized better tone in the appetite for the risk-related assets. Easing inflation figures in China and further stimulus helped with the sentiment amidst rising caution prior to the publication of crucial US inflation data.
Here is what you need to know on Tuesday, May 14:
The USD Index (DXY) traded with modest losses, although it managed to keep business above the 105.00 support. On May 14, Producer Prices are due along with the speech by Fed’s L. Cook and the discussion panel with Chair Powell.
EUR/USD reclaimed the area beyond the 1.0800 barrier to print new multi-day highs amidst broad-based Dollar weakness. Germany’s final Inflation Rate is due on May 14 seconded by the Economic Sentiment gauged by the ZEW institute in both Germany and the broader euro bloc.
GBP/USD advanced markedly past the 1.2500 barrier on the back of the resumption of the selling pressure in the Greenback. The publication of the UK labour market figures and the speech by BoE’s H. Pill are all expected to MY 14.
USD/JPY kept its march north in place, advancing to fresh highs past the 156.00 hurdle. The Japanese docket includes the release of Producer Prices on May 14.
In line with its risky peers, AUD/USD faded Friday’s pullback and rose beyond the 0.6600 mark, maintaining its trade in the upper end of the monthly range for the time being. The next publication of note in Oz will be the Wage Price Index on May 15.
WTI prices reversed part of Friday’s weakness and rose markedly further up of the $79.00 mark per barrel on Monday on the back of auspicious data from China and supply concerns from wildfires in Canada.
Gold prices reversed two straight sessions of gains and retreated to the $2,330 zone amidst rising prudence pre-US CPI. Silver prices, in the meantime, advanced modestly above the $28.00 mark per ounce.
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