FX Today: The FOMC Minutes and UK inflation data gather all the attention

The US Dollar (USD) traded in a slightly constructive tone, extending its recent advance on Tuesday, all against the backdrop of a persistent risk-off sentiment and steady caution ahead of key data releases on the US docket.

Here’s what to watch on Wednesday, November 19:

The US Dollar Index (DXY) alternated gains with losses in the 99.50-99.60 band amid a widespread decline in US Treasury yields and rising prudence ahead of US data releases. The FOMC Minutes will take centre stage, seconded by the usual weekly MBA Mortgage Applications and the EIA’s weekly report on US crude oil stockpiles. In addition, the Fed’s Williams is due to speak.

EUR/USD slipped back to multi-day lows near 1.1570 amid the generalised absence of direction in the FX galaxy. The Current Account results in the euro zone are due, ahead of the final Inflation Rate in the region and the preliminary Labour Cost Index. Additionally, the ECB’s Buch is expected to speak.

In line with the rest of its risk-related peers, GBP/USD traded without clear direction around the 1.3150 zone on Tuesday. The UK Inflation Rate will be on top of the domestic agenda.

USD/JPY clinches fresh tops past 155.70, advancing for the third day in a row and reigniting at the same time concerns over a potential FX intervention by the MoF. Next on tap in Japan will be the Balance of Trade results and Machinery Orders.

AUD/USD regained the smile following Monday’s steep pullback, briefly reclaiming the 0.6500 barrier and beyond. The Westpac Leading Index and the quarterly Wage Price Index are next on tap in Oz.

WTI traded with marked gains above the key $60.00 mark per barrel as traders continued to assess the recently announced US sanctions on Russian oil and oversupply concerns.

Gold reversed part of its three-day negative streak, although faltering just ahead of the $4,100 mark per troy ounce amid the broad-based risk-off environment, lower US Treasury yields and shrinking bets for an interest rate cut by the Federal Reserve at its December meeting. In the meantime, Silver prices regained balance and approached the $51.00 mark per ounce, setting aside three consecutive daily pullbacks.