Forex Today: All the attention shifts to US Inflation data

In a very positive start to the new trading week, the Greenback edged sharply higher following a fresh bout of optimism on the trade front, all after the auspicious US-China trade talks over the weekend.

Here is what you need to know on Tuesday, May 13:

The Dollar Index (DXY) rebounded markedly and came just pips away from the key 102.00 barrier, or five-week highs, following the encouraging tone from the recent US-China trade discussions. Markets participants will focus on the US Inflation Rate, seconded by the NFIB Business Optimism Index, and the API’s weekly report on US crude inventories.

EUR/USD collapsed to multi-week troughs near 1.1060 in response to the strong rebound in the US Dollar across the board. Attention now turns to the ZEW Economic Sentiment surveys in Germany and the euro area..

GBP/USD slipped back to the 1.3140 region on the back of the strong resurgence of the bid bias around the Greenback. The BRC Retail Sales Monitor and the release of the labour market figures will take centre stage across the Channel.

USD/JPY rose further and advanced to new six-week tops around the 148.60 zone following the improved sentiment around the US-China trade front. Traders’ focus will be on the release of the BoJ’s Summary of Opinions.

AUD/USD broke below the 0.6400 support, resuming its decline amid the continuation of the strong rebound in the US Dollar. The Westpac Consumer Confidence survey, NAB Business Confidence, Building Permits, and Private House Approvals are all due in Oz.

WTI gathered extra steam and flirted with three-week highs north of the $63.00 mark per barrel following auspicious news from the US-China trade front.

Gold prices remained on the defensive and revisited the area of monthly lows near the $3,200 mark per troy ounce amid the stronger US Dollar, higher US yields and extra optimism on the US-China trade conflict. Silver prices managed to bounce off daily troughs below the $32.00 mark ounce, ending the day with just humble losses.