Forex Today: PMI Data in Focus!

The US Dollar (USD) failed to sustain its rebound. Modest selling emerged late in Thursday’s North American session, and the Greenback has  since extended its multi-day correction, despite intensifying geopolitical tensions and a broad flight to safety.

102.00 proved a hurdle for the US Dollar Index (DXY). After approaching that level, the index surrendered its early gains as investors weighed the fragile geopolitical backdrop and fresh uncertainty surrounding the AI sector. Preliminary S&P Global Manufacturing and Services PMIs, together with the final U-Mich Consumer Sentiment reading, will complete the data calendar.

EUR/USD slipped towards 1.1190, near three-day lows, as its recovery lost traction. The week’s domestic releases will conclude with preliminary S&P Global Manufacturing and Services PMIs for Germany and the euro area.

GBP/USD extended its weekly rebound above 1.3400, holding its ground and securing modest gains. The UK calendar includes flash S&P Global Manufacturing and Services PMIs, Retail Sales and GfK Consumer Confidence.

USD/JPY moved towards 156.70, close to three-week lows, as demand for safe-haven assets supported the Japanese Yen. Japan’s forthcoming releases include the Inflation Rate and preliminary S&P Global Manufacturing and Services PMIs.

AUD/USD retreated towards 0.7000 with sizeable losses after failing to extend its rebound beyond 0.7040. Australia’s next scheduled releases are the preliminary S&P Global Manufacturing and Services PMIs.

Front-month WTI futures (December contract) renewed their challenge of the psychological $100.00 threshold. Prices stabilised after three consecutive daily declines, with renewed tensions in the Middle East crisis driving the advance.

Gold fell towards the key $4,000-per-troy-ounce level, marking fresh two-month lows. The precious metal came under pressure from inflation concerns, the prospect of further Federal Reserve tightening and a solid recovery in the US Dollar.