Forex Today: UK CPI and further US hard data in the spotlight

The Greenback extended its recovery on turnaround Tuesday, this time propped up by higher US inflation data in June, which lent support to the ongoing prudent stance by the Federal Reserve.

Here's what to watch on Wednesday, July 16:

The US Dollar Index (DXY) maintained its march north, largely exceeding the 98.00 hurdle, ot three-week highs, this time helped by the uptick in US CPI in June. Producer Prices will take centre stage, seconded by Industrial and Manufacturing Production, Capacity Utilisation, the Fed Beige Book, MBA Mortgage Applications, and the EIA’s report on US crude oil inventories. In addition, the Fed’s Logan, Hammack, and Barr are due to speak.

EUR/USD lost the grip and slipped back below the 1.1600 support for the first time since mid-June as investors assessed the release of US inflation data and a firm Economic Sentiment in the region. The EMU’s Balance of Trade results are expected.

GBP/USD extended its negative trend for yet another day, this time breaking below the 1.3400 zone amid. The critical UK Inflation Rate takes centre stage across the Channel.

USD/JPY rose further, advancing to levels last seen in early May past the 149.00 hurdle. The Reuters Tankan Index is next on tap in Japan.

AUD/USD faded an initial bullish attempt and ended the day near the 0.6500 neighbourhood, down for the third straight day. Next of relevance Down Under will be the labour market report and the Consumer Inflation Expectations, all due on July 17.

Prices of WTI dropped to six-day lows near the $66.00 mark per barrel despite alleviated concerns surrounding crude oil supply.

Gold prices added to Monday’s decline and slipped back to the $3,320 zone per troy ounce amid steady trade jitters and prospects that the Fed’s cautious stance might linger for longer. Silver prices receded from Monday’s 14-year highs past the $39.00 mark per ounce, challenging the $38.00 mark per ounce once again.