The US Dollar is on the backfoot after the December Producer Price Index got released. Traders are on edge over possible comments from President-elect Donald Trump on the above headline. The US Dollar Index (DXY) dips below 110.00 and looks for support to bounce back.
EUR/USD remains under pressure near 1.0300 in the European trading hours on Wednesday. The pair is undermined by a broadly steady US Dollar and a tepid risk sentiment ahead of the US CPI inflation data release. Dovish ECB commentary also remain a weight on the pair.
GBP/USD erases losses to retake 1.2200 in the European session on Wednesday. The Pound Srerling shakes off a surprise cooldown in the UK inflation. The December UK CPI inflation fell to 2.5% YoY vs. 2.7% expected. The focus now shifts to US CPI data.
USD/JPY has come under renewed selling pressure and drops below 157.50 in the early European morning on Wednesday. The pair retraces from near 158.00 after BoJ Governor Ueda talks up the odds of a rate hike next week. Meanwhile, US Dollar stays subdued ahead of the crucial US CPI report.
Gold price reverses an intraday dip to the $2,669 area and turns positive for the second straight day on Wednesday, though the upside seems limited ahead of the US CPI report. The US Dollar hangs near the weekly low touched in reaction to the softer US PPI on Tuesday and turns out to be a key factor lending support to the commodity.
West Texas Intermediate, the US crude oil benchmark, is trading around $76.75 on Wednesday. The WTI price edges higher as new US sanctions on Russian oil exports threaten to tighten global supplies.
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When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.
