Forex Today: Lack of enthusiasm points to some consolidation

There was no joy for the Greenback on Tuesday, as sellers regained control amidst a generalized absence of fervour among market participants prior to the release of key US data later in the week. The British pound outperformed its peers of the risk-linked galaxy on the back of a persistently restrictive stance from the BoE.

Here is what you need to know on Wednesday, August 28:

The US Dollar Index (DXY) rapidly left behind Monday’s advance and refocused on the downside, where recent YTD lows sit. The MBA’s weekly Mortgage Applications results are due on August 28, seconded by the EIA’s report on US crude oil inventories and the speech by FOMC’s Waller.

EUR/USD regained upside traction and partially faded the negative start to the week. On August 28, the ECB will publish its M3 Money Supply figures along with Loans to Companies and Loans to Households data.

GBP/USD rose to more than two-year highs near 1.3250, backed by expectations that the BoE would not reduce rates as much as markets anticipated this year. There will be no data releases across the Channel on August 28.

USD/JPY maintained the downtrend well in place and challenged once again the key support at 144.00. The final Coincident Index and Leading Economic Index will come on August 28.

AUD/USD maintained its business in the area of recent peaks, although a test or surpass of the 0.6800 barrier remained elusive. The RBA’s Monthly CPI Indicator is due on August 28.

WTI retreated sharply and left behind three consecutive days of gains on the back of renewed demand concerns and some profit-taking in light of the recent pronounced rebound.

Prices of Gold alternated gains with losses above the $2,500 region per ounce troy amidst investors’ prudence prior to the US PCE release. Silver prices rose slightly and remained near the $30.00 mark per ounce.