Forex Today: Markets’ attention remains on US economy and tariffs
The US Dollar regained some composure after bottoming out in fresh two-month lows, managing to stage a decent bounce despite persistent uncertainty surrounding US tariffs and renewed concerns over the US economy.
Here is what you need to know on Thursday, February 27:
The US Dollar Index (DXY) clocked acceptable gains soon after hitting new multi-week lows near 106.20 on Wednesday amid mixed US yields across the curve and steady speculation on the health of the US economy. The weekly Initial Jobless Claims wil be published along with Durable Goods Orders, and another estimate of Q4 GDP Growth Rate. Additionally, the Fed’s Bowman, Hammack and Harker are all due to speak.
Another failed attempt to trespass the 1.0500 barrier saw EUR/USD recede to the vicinity of 1.0470, fading part of Tuesday’s gains. The final EMU’s Consumer Confidence and Economic Sentiment are expected, seconded by the ECB’s M3 Money Supply.
GBP/USD could not sustain the early move past the 1.2700 mark, eventually clinging to modest gains near 1.2680. The annualised Car Production readings are next on tap on the UK calendar.
USD/JPY faded the initial bull run to the vicinity of 150, retracing that move and closing Wednesday’s session near 149.00. Next on the japanese docket will come the Tokyo inflation figures, along with Industrial Production, Retail Sales, Housing Starts, Construction Orders, and the weekly Foreign Bond Investment readings, all expected on February 28.
AUD/USD remained on the defensive for the fourth day in a row, putting the key 0.6300 level to the test on Wednesday. The quarterly Private Capital Expenditure will be released.
WTI prices succumbed to the stronger US Dollar and unabated fears surrounding US tariffs, extending the drop well below the $69.00 mark per barrel and adding to Tuesday’s pullback.
Prices of Gold added to the recent hiccup, although the precious has metal met solid contention around the $2,900 zone per ounce troy for the time being. Silver prices managed to reverse the initial bearish tone and ended up modestly just below the $32.00 mark per ounce.