Forex Today: No surprises expected at the ECB meeting

The downtrend in the US Dollar gathered extra steam on Wednesday, fuelled by concerns over the US economy and some renewed hopes that the Trump administration could delay some planned tariffs.

Here is what you need to know on Thursday, March 6:

The US Dollar Index (DXY) broke below the 105.00 support, reaching news four-month lows amid further concerns over the US economy. The January Balance of Trade results are due, seconded by Challenger Job Cuts, the usual weekly Initial Jobless Claims, and Unit Labor Costs. In addition, the Fed’s. Waller and Harker are due to speak.

EUR/USD extended its solid performance to the vicinity of the 1.0800 barrier, or new four-month peaks. The ECB’s interest rate decision will take centre stage, along with Lagarde’s press conference. Data wise, the HCOB Construction PMI in Germany and the euro area will be released along with Retail Sales in the whole bloc.

GBP/USD climbed to just pips away from the key barrier at 1.2900 the figure, or multi-month tops. The S&P Global Construction PMI will be the sole release across the Channel, followed by the speech by the BoE’s Mann.

USD/JPY resumed its downtrend and revisited the low-148.00s following the sharp pullback in the Greenback. The weekly Foreign Bond Investment figures will be published.

AUD/USD rose markedly, advancing for the third straight day and reclaiming the area beyond the 0.6300 hurdle. The Balance of Trade results are expected, seconded by flash prints of Building Permits and Private House Approvals.

Prices of the barrel of WTI dropped to new lows near the $65.00 mark in response to an increased in US crude oil supplies, tariff concerns and the expected OPEC+ intention to increase the oil output in April.

Gold prices hit their third straight day of gains, retesting the $2,920 zone following the sharp decline in the US Dollar. Silver prices rallied further north of the $32.00 mark per ounce, flirting with eight-day highs.