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Forex Today: Gearing up for US CPI

A vacillating session saw the Greenback extend its weekly consolidation amidst erratic performance in the risk complex, as investors evaluated another congressional testimony by Chair Powell prior to the publication of US CPI data.

Here is what you need to know on Thursday, July 11:

The USD Index (DXY) kept the vacillating mood just above the 105.00 hurdle amidst muted US yields. The release of US Inflation Rate takes centre stage on July 11 seconded by weekly Initial Jobless Claims and speeches by the Fed’s Cook and Bostic.

EUR/USD improved marginally and left behind a negative first half of the week, revisiting the 1.0830 region on Wednesday. The final Inflation Rate in Germany is expected on July 11.

GBP/USD maintained its bullish bias past the 1.2800 level on the back of hawkish comments from BoE officials and some mild selling pressure in the Greenback. A busy UK docket on July 11 features GDP readings, Construction Output, Balance of Trade, Industrial Production, Manufacturing Production, and the NIESR Monthly GDP Tracker.

USD/JPY extended its weekly recovery further, opening the door to an imminent test of the 2024 high near 162. Weekly Foreign Bond Investment figures and Machinery Orders will be in the limelight in Japan on July 11.

AUD/USD showed some lack of confidence to advance further, moving into a consolidative phase always above 0.6700 instead. The Consumer Inflation Expectations tracked by the Melbourne Institute are due on July 11.

WTI prices set aside three sessions in a row of losses and staged a mild comeback above the $82.00 mark per barrel.

Gold prices added to Tuesday’s gains and flirted with the $2,390 mark per ounce troy on the back of the lack of direction in the US Dollar and muted yields. Silver prices navigated a tight range near the $31.00 region per ounce.

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Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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