Forex Today: It is PMI-day!

Pablo Piovano FXStreet

The Greenback managed to regain strong upside traction and bounced off recent three-year lows vs. its main peers despite persistent tariff jitters and further Trump-Powell effervescence.

Here is what you need to know on Wednesday, April 23:

The US Dollar Index (DXY) posted decent gains on Tuesday, reversing part of the Monday’s pessimism despite the mixed tone in US yields across the board. The weekly MBA Mortgage Applications are due, followed by the flash S&P Global Manufacturing and Services PMIs, New Home Sales, the EIA’s weekly report on US crude oil stockpiles, and the Fed’s Beige Book.

EUR/USD lost upside momentum following Monday’s yearly peaks, receding to the 1.1430 area in response to the firmer tone in the US Dollar. The advanced HCOB Manufacturing and Services PMIs in Germany and the Euroland will be released, seconded by the EMU’s Balance of Trade results and Construction Output.

GBP/USD slipped back to the low-1.3300s after failing to extend its rally north of tops around the 1.3420 zone. The Public Sector Net Borrowing figures are due along the advanced S&P Global Manufacturing and Services PMIs.

USD/JPY broke below the 140.00 support for the first time since September 2024, although it managed to stage a strong rebound later in the day. The preliminary Jibun Bank Manufacturing and Services PMIs are expected on the Japanese docket.

AUD/USD receded from yearly peaks near 0.6440 following the better tone in the Greenback. The flash S&P Global Manufacturing and Services PMIs are due on April 23.

WTI prices rebounded with certain conviction past the $63.00 mark per barrel despite the stronger Dollar and unabated concerns surrounding US tariffs.

Gold prices rose to a record high at $3,500 per troy ounce underpinned by safe-haven demand. However, the yellow metal retraced part of that advance in the latter part of the day. Silver prices added to Monday’s uptick, coming closer to the key $33.00 mark per ounce.

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.

GBP/USD surrenders some gains, back to 1.3420

GBP/USD holds on to moderate gains above 1.3400 the figure on Friday. Optimism surrounding the UK government’s leadership transition and expectations of further BoE tightening support the British Pound, while easing tensions in the Middle East and fading Fed rate-hike expectations weigh on the US Dollar.

EUR/USD turns positive, targets 1.1450

EUR/USD now picks up pace and advances toward the 1.1440 region on Friday, up modestly for the day. With no major economic data due, lingering uncertainty over the US-Iran conflict keeps investors cautious, limiting the pair's upside.

Gold remains offered, still below $4,100

Gold struggles to extend Thursday’s rebound and navigates below the $4,100 mark per troy ounce on Friday. Uncertainty surrounding the Middle East conflict limits the precious metal’s upside, which is also under pressure amid rising US Treasury yields across the curve.

Week ahead – US CPI and Warsh testimony to take centre stage, BoC eyed too

US inflation report and Warsh testimony to headline the week. Dollar to dominate amid slew of other US data and Mideast tensions. Amid fresh Iran escalation, China GDP to shed light on Q2 impact. Bank of Canada not expected to follow RBNZ with rate hike.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.