Forex Today: The FX galaxy now looks at the ECB… and US inflation

Pablo Piovano FXStreet

An unexpected rise in the US CPI in March propelled the Greenback to yearly highs and kept the risk complex under renewed and strong downside pressure. There was no news from the FOMC Minutes, while the ECB is widely anticipated to leave its policy rates unchanged on Thursday.

Here is what you need to know on Thursday, April 11:

The Greenback rose markedly and pushed the USD Index (DXY) to fresh yearly highs north of the 105.00 barrier. On April 11, Producer Prices will take centre stage, seconded by weekly Initial Jobless Claims. In addition, Fed’s Williams, Collins, and Bostic are all due to speak.

EUR/USD retreated sharply and revisited the 1.0720–1.0730 band, challenging at the same time the area of monthly lows. The ECB meets on April 11 and is seen leaving its monetary conditions unchanged. President Lagarde will also hold her usual press conference after the bank’s decision.

GBP/USD traded well on the defensive and flirted with the 2024 low in the 1.2520 zone. In the UK, GDP prints are expected in the latter part of the week.

The stronger dollar and rising US yields motivated USD/JPY to surge to the boundaries of the 153.00 hurdle. In Japan, weekly Foreign Bond Investment readings are expected on April 10.

AUD/USD collapsed to multi-day lows and put the 0.6500 support to the test on the back of the robust bounce in the greenback. The Consumer inflation expectations are due on April 11.

Shrinking hopes of a ceasefire in the Middle East bolstered the daily uptick in WTI prices despite the unexpected build of US crude oil inventories.

Gold prices retreated from recent record highs on the back of the bid bias in the dollar and rising US yields. The same performance saw Silver prices come under selling pressure after hitting new peaks around $28.50 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.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.