Forex Today: Investors shift their focus to US CPI data

The Greenback traded on the defensive once again on Tuesday, testing two-day lows and weighed down by another tariff story as well as disappointing US Producer Prices, while market participants got ready for the release of the more relevant CPI on Wednesday.

Here is what you need to know on Wednesday, January 15:

The US Dollar Index (DXY) retreated to the low-109.00 amid weaker yields and the generalised recovery in the risk-associated assets. The release of the CPI will take centre stage, seconded by usual MBA Mortgage Applications, the NY Empire State Manufacturing Index, and the Fed Beige Book. In addition, the Fed’s Barkin, Kashkari, Williams, and Goolsbee are all due to speak.

EUR/USD rebounded further from Monday’s fresh cycle lows near 1.0180 and traded at shouting distance from the 1.0300 hurdle. Wholesale Prices in Germany and the Full Year GDP Growth are expected along with the speech by the ECB’s Lane and De Guindos.

Following a brief drop to the sub-1.2100 region, GBP/USD regained some composure and revisited the 1.2250 zone. Key UK Inflation Rate will be at the centre of the debate, seconded by a 10-year Gilt auction.

USD/JPY reversed three consecutive daily pullbacks and advanced to two-day highs just above the 158.00 barrier. The Reuters Tankan Index and Machine Tool Orders are due.

Renewed selling pressure in the Greenback allowed AUD/USD to briefly trespass the 0.6200 hurdle and print three-day peaks on Tuesday. Next of relevance in Oz will be the publication of the jobs report on January 16.

WTI prices gave away part of the recent three-day strong climb and slipped back below the $78.00 mark per barrel.

Gold prices resumed their ascent and retested the vicinity of the $2,680 mark per troy ounce encouraged by the weaker Dollar and lower yields. Silver prices traded with decent gains although another move above the key $30.00 mark per ounce remained elusive.