Forex Today: Attention shifts to the ECB and US PPI

The US Dollar (USD) navigated a bearish range on Wednesday, gathering some pace soon after the US Treasury announced a buyback of up to $6 billion in 10- to 20-year T-bonds. Other than that, traders remained pretty sceptical regarding the unabated tensions in the Middle East, refocusing instead on the imminent release of US inflation data on Friday.

Here is what you need to know on Thursday, September 10:

The US Dollar Index (DXY) has remained below the 99.00 level, down modestly for the day despite US Treasury yields rebounding across the curve, particularly after the US Treasury’s announcement. Producer Prices will take centre stage, seconded by the usual Initial Jobless Claims, Existing Home Sales, Wholesale Inventories and the EIA’s weekly report on US crude oil inventories.

EUR/USD has kept its bid bias unchallenged, advancing to multi-day peaks past 1.1650. The ECB is widely anticipated to hike its rates by 25 basis points. In addition, the final German Inflation Rate is due.

GBP/USD has left behind Tuesday’s inconclusive price action and has resumed its move higher, reaching multi-day tops around 1.3570. The RICS House Price Balance will be the only release across the Channel.

There was no respite for the downward trend in USD/JPY, which has added to Tuesday’s decline and revisited the 153.00 region, or seven-month troughs. The weekly Foreign Bond Investment figures are due, followed by the speech by the BoJ’s Masu.

AUD/USD has clinched fresh tops around 0.7240, levels last seen in early May. Next on tap in Oz will be the publication of the Consumer Inflation Expectations tracked by the Melbourne Institute.

WTI flirted with four-month highs near the $97.00 mark per barrel, always on the back of persistent effervescence in the US-Iran-Hormuz crisis.

Gold has managed to set aside three daily losses in a row, reclaiming the area above the $4,400 mark per troy ounce on the back of the mildly offered stance of the US Dollar, continuous geopolitical jitters and the generalised pre-US CPI caution.