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Forex Today: Investors will look at Japanese inflation figures

The Greenback made a U-turn, building on Wednesday’s post-FOMC recovery and climbing to weekly highs as investors reassessed the Federal Reserve’s lack of urgency in cutting rates.

Here is what you need to know on Friday, March 21:

The US Dollar Index (DXY) regained the smile and returned to the area beyond the 104.00 barrier despite further weakness in US yields across the various maturity periods. The speech by the Fed’s Williams will be the sole release on the US docket at the end of the week.

EUR/USD succumbed to the marked rebound in the Greenback and receded to multi-day lows in the 1.0820-1.0810 band. The BuBa’s Mauderer is expected to speak.

GBP/USD came under renewed selling pressure and retested the 1.2940 region amid the widespread retracement in the risk complex. The GfK’s Consumer Confidence gauge will be released followed by Public Sector Net Borrowing figures.

USD/JPY reversed Wednesday’s drop and advanced marginally to the vicinity of the 149.00 level on Thursday. The Japanese Inflation Rate will be the salient event in the FX world on Friday along with Foreign Bond Investment readings.

AUD/USD lost further impulse and slipped back to weekly lows near 0.6270 following renewed buying interest in the US Dollar. The next data release in Oz will be the Monthly CPI Indicator on March 26.

Prices of the barrel of WTI maintained their choppy performance on Thursday, returning to the sub-$67.00 region on the back of the firm tone in the Greenback.

Prices of Gold rose to an all time high near $3,060 per troy ounce, deflating afterwards following the strong demand for the US Dollar. Silver prices plummeted to the vicinity of the $33.00 mark per ounce, or five-day lows.

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Pablo Piovano

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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