Forex Today: US inflation and jobs take centre stage alongside UK data

Poor US inflation data and increasing bets of a Fed rate cut in September, coupled with the US-China trade agreement, kept the US Dollar on the defensive throughout the day.

Here's what to watch on Thursday, June 12:

The US Dollar Index (DXY) broke below the 99.00 support to hit new multi-day troughs amid mixed US yields across the curve. Producer Prices will be in the spotlight, seconded by weekly Initial Jobless Claims.

The sell-off in the Greenback gained extra momentum, causing EUR/USD to rise further and approach the 1.1500 barrier. The ECB’s Schnabel, De Guindos, and Elderson are all due to speak.

GBP/USD regained the smile and kept the trade above the 1.3500 hurdle, leaving behind Tuesday’s pullback. An interesting docket will feature GDP figures, Industrial and Manufacturing Production, Balance of Trade results, Construction Output, the RICS House Price Balance, and the NIESR Monthly GDP Tracker.

USD/JPY maintained its erratic performance so far this week, fading Tuesday’s gains and resuming its downtrend to the 144.30 zone. The BSI Large Manufacturing data is due, seconded by the weekly Foreign Bond Investment prints.

AUD/USD rose to new yearly peaks near 0.6550, just to retrace that move and end the day with modest losses near 0.6500. Next on tap in Oz will be the Inflation Expectations tracked by the Melbourne Institute and the speech by the RBA’s Jacobs.

Positive headlines from the US-China trade front boosted crude oil prices, propelling them to new two-month highs beyond the $68.00 mark per barrel of American WTI,

Gold prices extended their gradual weekly advance, hitting multi-day highs around $3,360 per troy ounce following the selling interest in the US Dollar and the US-China trade agreement. Silver prices added to Tuesday’s pullback and eased to two-day lows, coming just pips away from the key support at the $36.00 mark per ounce.