Forex Today: What if the ECB…?

The US Dollar (USD) has come under fresh downside pressure on Wednesday as investors continued to digest the latest FOMC event and the mixed performance in US Treasury yields across the curve.

The US Dollar Index (DXY) has interrupted its three-day positive streak, coming under fresh selling pressure and revisiting the vicinity of the 102.00 contention zone. The usual weekly Initial Jobless Claims are due, alongside the PCE, Personal Income/Spending, and the preliminary Q3 GDP Growth Rate.

EUR/USD has managed to regain the smile, reversing five consecutive daily drops and challenging the 1.1170 region. The ECB meets and is expected to keep its policy rate unchanged. Further data will see the final Consumer Sentiment gauge in Euroland.

GBP/USD has traded with modest gains, retesting the 1.3340 area after a decent U-turn from new multi-day troughs near 1.3270. The BoE’s Consumer Credit figures are due along with Mortgage Approvals/Lending and the BoE’s M4 Money Supply and Net Lending to Individuals figures.

USD/JPY could not sustain the bull run past the key 158.00 hurdle, eventually ending the day near 157.80 and slightly in the red. The usual weekly Foreign Bond Investment figures are due along with the Consumer Confidence reading.

AUD/USD has advanced further, hitting new five-week highs and challenging its critical 200-day SMA around 0.7060. Export/Import Prices will be the sole data release in Oz.

Front-month WTI futures (December contract) have regained upside traction, popping to weekly tops past the $103.00 mark per barrel as traders assessed reignited supply concerns in the Middle East.

Gold has resumed its decline, leaving behind two daily advances in a row and trading at shouting distance from the $4,000 mark per troy ounce on the back of rising crude oil prices and a decent uptick in US Treasury yields across the board.