Forex Today: Focus shifts to Warsh and more US data

The US Dollar (USD) has come under strong and renewed downside pressure on Thursday, briefly revisiting the area of multi-day lows amid the equally marked decline in US Treasury yields across the board and a generalised cautious tone amid market participants.

The US Dollar Index (DXY) has broken below the 102.00 support level, briefly slipping back to multi-day lows on the back of the widespread retracement in US Treasury yields. Closing the docket will be Export/Import Prices, Industrial/Manufacturing Production, Capacity Utilisation and Net Long TIC Flows. In addition, Fed Chair Warsh will speak at the IMF-World Bank annual meetings in Singapore.

The fresh weakness hurting the Greenback has lifted EUR/USD to weekly tops past the key 1.1200 barrier. clinched fresh 17-month lows near the 1.1100 level on the back of the strong upside momentum in the US Dollar. The final Inflation Rate in the euro area is due alongside Balance of Trade results.

GBP/USD has faded Wednesday’s deep pullback, managing to challenge the area of multi-day highs past 1.3270. Absent data releases on the UK docket, investors will closely follow remarks from the BoE’s Bailey.

USD/JPY has added to the ongoing correction, revisiting the 157.50 region in tandem with fresh USD selling. The weekly Foreign Bond Investment figures will be the sole data release on the domestic calendar.

AUD/USD has unexpectedly collapsed to three-month lows, piercing the 0.6900 yardstick in response to disheartening results from the Australian labour market report. Next of note for the Aussie will be Monday’s release of GDP data in China alongside Industrial Production, Retail Sales and the Unemployment Rate.

Front-month WTI futures have picked up extra pace, flirting with the area of four-week tops near the $97.00 mark per barrel amid steady uncertainty in the Middle East crisis along with supply concern fears.

Gold has traded with modest gains, always below the $4,200 mark per troy ounce in a context of fresh downside pressure on the US Dollar and a marked retracement in US Treasury yields across the curve.