Forex Today: EMU’s flash inflation and the ISM Manufacturing in the spotlight

The US Dollar (USD) started the week on the defensive, slipping back to multi-week troughs amid the inactivity in the US markets and a broad-based firmer tone in the risk complex.

Here's what to watch on Tuesday, September 2:

The US Dollar Index (DXY) dropped for the fifth day in a row, hitting five-week lows near 97.50 ahead of a week packed with key US data releases. The ISM Manufacturing will take centre stage ahead of the final S&P Global Manufacturing PMI, Construction Spending and the RCM/TIPP Economic Optimism Index.

EUR/USD surpassed the 1.1700 hurdle to clinch fresh six-day peaks following the continuation of the downward bias in the Greenback. Next on tap on the domestic calendar will be the preliminary Inflation Rate in the Euroland, alongside speeches from the ECB’s Elderson and Machado.

GBP/USD advanced to two-week highs near 1.3550, extending further the ongoing multi-day recovery. The next data release on the UK docket will be the final S&P Global Services PMI on September 3.

USD/JPY added to Friday’s uptick past the 147.00 barrier, always amid the multi-week consolidative phase. The final S&P Global Services PMI is next in Japan on September 3.

AUD/USD maintained its march north unabated, hovering around the 0.6560 region and trading closer to its monthly highs. The Q2 Current Account results are next in Oz.

Prices of American WTI rose to five-day highs near the $65.00 mark per barrel, propped up by selling pressure on the US dollar and supply disruption fears.

Gold prices rose further on Monday, refocusing on their all-time highs around the $3,500 mark per troy ounce, always on the back of rising bets of a rate cut by the Fed later in the month. Silver prices rallied past the key $40.00 mark per ounce for the first time since September 2011.