Forex Today: Canadian inflation and German morale take centre stage

Pablo Piovano FXStreet

The Greenback extended Friday’s bearish tone, hovering near the lower end of its recent range amid persistent concerns over a potential US economic slowdown and rising prudence pre-FOMC.

Here is what you need to know on Tuesday, March 18:

The US Dollar Index (DXY) added to Friday’s pullback and remained in the low-103.00s on Monday. Building Permits and Housing Starts are due seconded by Import/Export Prices, Industrial and Manufacturing Production and the API’s weekly report on US crude oil supplies.

EUR/USD rose modestly and managed to surpass the key 1.0900 barrier once again following the weaker note in the US Dollar. The Economic Sentiment in Germany and the Euroland will be at the centre of the debate, followed by the Balance of Trade results in the bloc.

GBP/USD reversed two daily pullbacks in a row and flirted with the 1.3000 milestone amid renewed USD selling. Next of relevance across the Channel will be the labour market report and the BoE’s interest rate decision, both due on March 20.

USD/JPY built up on Friday’s marked advance and trespassed the 149.00 hurdle once again, although the bullish impetus lost some traction afterwards. The Tertiary Industry Index will be released.

AUD/USD broke above the 0.6300 mark with certain conviction and printed new multi-day highs in response to the generalised upbeat tone in the risk complex. The RBA’s Hunter is due to speak.

Prices of WTI rose markedly, managing to extend Friday’s gains and advance past the $68.00 mark per barrel.

Gold prices kept the constructive tone in place and hovered around the key $3,000 region per troy ounce following the slightly offered Dollar and mixed US yields. Silver prices retreated modestly, retesting the $33.50 region per ounce following Friday’s tops past the $34.00 yardstick.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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