Forex Today: US inflation is back

The US Dollar (USD) maintained its bullish momentum well in place for yet another day, this time revisiting levels last seen in April 2025 amid steady speculation of further tightening by the Federal Reserve, with investors even mulling the idea of a half-point interest rate raise.

The US Dollar Index (DXY) has advanced past the 103.00 hurdle to hit new 18-month highs, helped by the generalised bearish tone in the risk complex and rising bets for another fed rate hike at the December gathering. The Producer Prices data will close the calendar along with speeches by the Fed’s Williams, Bowman, and Daly.

EUR/USD has further extended its downtrend, reaching new troughs around 1.1050 on the back of the persistent move higher in the US Dollar. The EMU’s Balance of Trade results are due, seconded by the advanced Q3 Employment Change and the second estimate of the Q3 GDP Growth Rate in the bloc. In addition, the ECB’s Elderson and Schnabel are due to speak.

GBP/USD has dropped to multi-week lows, navigating the area close to the 1.3200 contention zone. Next on tap across the Channel is the key labour market report, due for release on November 17.

USD/JPY has traded just pips away from the critical 160.00 barrier, underpinned by the solid momentum around the US Dollar. The next release of note in Japan will be the preliminary Q3 GDP Growth Rate, due on November 16, along with final Industrial Production figures and Capacity Utilisation readings. 

AUD/USD has briefly pierced the 0.6800 support level for the first time since January, down for the third straight day amid extra upside traction in the Greenback. The RBA will publish its Minutes on November 17.

Front-month WTI futures (December contract) have traded in an inconclusive fashion between the $85.00 and $87.00 marks per barrel, always closely following developments (or the lack of them) from the Middle East conflict.

Gold has sold off to the vicinity of the $3,850 mark per troy ounce on Thursday, coming under continuous downside pressure following extra upside momentum in the US Dollar, and rising US Treasury yields, particularly in the short end and the belly of the curve.