Forex Today: Traders will look at employment data in Australia and the US
The US Dollar maintained its constructive path helped by fresh concerns around US tariffs and amid geopolitical tension in response to negotiations around a potential end of the Russia-Ukraine war.
Here is what you need to know on Thursday, February 20:
The US Dollar Index (DXY) added to Tuesday’s gains above the 107.00 barrier on the back of tariff concerns and despite declining US yields across the curve. The usual weekly Initial Jobless Claims are due, seconded by the Philly Fed Manufacturing Index, the CB Leading Economic Index, and the weekly report on US crude oil inventories by the EIA. In addition, the Fed’s Goolsbee, Barr, Musalem and Kugler are all due to speak.
EUR/USD came under extra selling pressure and receded to the 1.0400 zone, where some initial contention seems to have emerged. The advanced Consumer Confidence tracked by the European Commission will be in the spotlight, along with Producer Prices in Germany.
GBP/USD saw its decline pick up pace, breaking below the 1.2600 support despite firmer UK inflation data. The CBI Industrial Trends Orders will be released across the Channel.
Fresh buying interest in the Japanese yen prompted USD/JPY to leave behind Tuesday’s uptick and refocus on the downside, briefly retesting the 151.20 zone. The weekly Foreign Bond Investment figures are expected in “The Land of the Rising Sun”.
AUD/USD traded in a vacillating mood, although it managed well to keep the trade in the upper end of the range near 0.6350. The publication of the labour market report will be the salient event Down Under, seconded by preliminary S&P Global Manufacturing/Services/Composite PMIs.
The resurgence of tariff jitters, geopolitical tensions and supply woes saw the barrel of WTI advance for the third straight day, this time flirting with the $73.00 mark.
Prices of Gold rose to another record high near $2,950 per ounce troy, slowly approaching the key $3,000 mark. Silver prices could not sustain an early move past the $33.00 mark per ounce and eventually succumbed to the selling pressure.