FX Today: Trump and the US labour market come to the fore

The US Dollar (USD) kept its bearish impulse well in place for the second day in a row on Wednesday, this time retreating from recent multi-month tops on the back of the marked improvement in the risk-associated universe and rising hopes of a potential end to the conflict in the Middle East sooner rather than later.

Here’s what to watch on Thursday, April 2:

The US Dollar Index (DXY) dropped to fresh five-day lows near 99.30 amid mixed US Treasury yields and the broad-based better tone in the risk complex. US President Donald Trump is expected to comment on developments in the Middle East early in the Asian trading hours, while the usual Initial Jobless Claims and advanced Balance of Trade results will be the salient events on the US docket.

EUR/USD added to Tuesday’s marked advance, surpassing the 1.1600 barrier and coming close to the area of three-week peaks. The Euro docket will be empty on Maundy Thursday.

GBP/USD jumped to three-day highs north of 1.3300, always on the back of the firm risk-on sentiment. The BoE will publish its Decision Market Panel (DMP) in a single release across the Channel.

A vacillating price action saw USD/JPY trade in a narrow range, briefly challenging the 159.00 hurdle just to retreat a tad afterward. The usual weekly Foreign Bond Investment figures are due seconded by the Monetary Base readings.

AUD/USD built on Tuesday’s advance and reclaimed the area well beyond the 0.6900 barrier, up around one cent from Tuesday’s troughs. The Balance of Trade results will take centre stage in Oz.

WTI prices retreated further, coming close to the $96.00 mark per barrel before heading back to the $100.00 region as traders continue to assess developments from the Middle East crisis.

Gold kept its march north unabated, this time approaching the $4,800 mark per troy ounce on the back of the weaker US Dollar, mixed US Treasury yields and steady uncertainty surrounding the US-Israel-Iran conflict.