Forex Today: US inflation dominates headlines

The Greenback sharply reversed its recent positive streak on the back of the negative surprise of US CPI in May, while the hawkish hold by the Federal Reserve helped the USD Index (DXY) regain some composure.

Here is what you need to know on Thursday, June 13:

The USD Index (DXY) revisited the area of three-day lows on the back of declining US yields, lower CPI and after the Fed left rates unchanged, as expected. On June 13, the usual weekly Initial Jobless Claims are due seconded by Producer Prices and the speech by Fed’s Williams.

EUR/USD managed to stage quite a colourful comeback and advanced beyond 1.0800 the figure, although part of those gains fizzled out post-Powell’s press conference. Industrial Production readings in the euro bloc are expected on June 13.

GBP/USD rose to three-month highs well north of 1.2800 following the sharp sell-off in the US Dollar. There are no data releases scheduled for June 13 across the Channel.

USD/JPY reversed three consecutive daily declines, although it bounced off three-day lows near 155.70 as the Greenback trimmed some losses at the end of the day. The Quarterly BSI Large Manufacturing index and weekly Foreign Bond Investment figures will be published on June 13.

AUD/USD briefly retested the area just beyond the 0.6700 barrier against the backdrop of a strong pick-up in the selling bias in the US Dollar. The release of the Australian labour market report takes centre stage on June 13 seconded by Westpac’s Consumer Confidence print.

Prices of WTI advanced marginally as traders assessed the Fed’s interest rate decision and another negative weekly report of US crude oil inventories.

Gold prices ended Wednesday’s session marginally on the defensive after it could not sustain a post-Fed move above $2,340 region. Silver charted small gains but it came under pressure soon after hitting the $30.00 mark per ounce.