Forex Today: US CPI data takes centre stage amidst Dollar rally

Amid another strong performance, the US Dollar climbed to new six-month tops as investors maintained their optimism around the “Trump trade" ahead of the publication of key US data in the latter part of the week.

Here is what you need to know on Wednesday, November 13:

The US Dollar Index (DXY) rose past the 106.00 barrier to hit multi-month peaks, helped by the marked bounce in US yields. The release of the US Inflation Rate will be at the centre of the debate, seconded by the MBA’s Mortgage Applications and the API’s weekly report on US crude oil inventories. In addition, the Fed’s Logan, Musalem, and Schmid.

EUR/USD weakened further and clocked new 2024 lows in the 1.0595-1.0590 band in response to the robust sentiment around the Greenback.

GBP/USD extended its deep leg lower to the 1.2720 region, or three-month lows, always on the back of the incessant move higher in the US Dollar.

USD/JPY added to Monday’s advance and came just short of four-month highs near the 155.00. Producer Prices will be in the limelight on the Japanese docket.

Another day of marked gains in the Greenback kept AUD/USD under pressure and prompted it to revisit the area of monthly lows near 0.6510. The Wage Price Index will be unveiled.

WTI prices alternated gains with losses around the $68.00 mark per barrel following two consecutive daily pullbacks as traders gauged the OPEC+ revised forecast for crude oil demand for this year and the next once, while the strong US Dollar kept the price action subdued.

Further downside saw Gold prices tumble to two-month lows in the sub-$2,600 region per ounce troy against the backdrop of extra gains in the Greenback and increasing US yields. Silver prices deflated to five-week lows, although the key $30.00 mark per ounce zone held the downside.