Forex Today: The Dollar remains on the defensive, looks at US CPI


A negative start to the week saw the Greenback under pressure, while the risk complex managed to regain some composure and US yields climbed slightly across the curve. Traders, in the meantime, continued to assess the latest Payrolls prints ahead of the key US CPI, FOMC Minutes, and the ECB event.

Here is what you need to know on Tuesday, April 9:

The US Dollar resumed the downtrend on Monday amidst rising cautiousness prior to key US releases later in the week. On April 9, the NFIB Business Optimism Index is due, seconded by the RCM/TIPP Economic Optimism Index, the API’s weekly report on US crude oil inventories, and the speech by Minneapolis Fed N. Kashkari.

EUR/USD kicked off the week in quite strong fashion, leaving behind Friday’s pullback and revisiting the 1.0860 region once again.

GBP/USD followed its risk-linked peers and advanced markedly to two-day highs near 1.2660, an area coincident with the 100-day SMA. The BRC Retail Sales Monitor is expected on April 9.

USD/JPY added to Friday’s gains, although it faltered once again in levels just shy of the key 152.00 hurdle. The Consumer Confidence gauge and Machine Tools Orders are due on April 9 in the Japanese docket.

AUD/USD reclaimed the area beyond the 0.6600 mark, advancing to two-day highs amidst further dollar weakness. On April 9, Westpac’s Consumer Confidence Index and the Consumer Confidence Change tracked by NAB are all due.

Dwindling geopolitical jitters weighed on crude oil prices and sparked the second daily pullback in WTI prices on Monday.

Prices of gold maintained their upside momentum well in place, advancing to an all-time high past $2,350. Silver prices advanced further north of the $28.00 mark per ounce for the first time since mid-June 2021.

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