Dollar Under Pressure as Markets Await US Inflation Data and ECB Rate Hike
The US Dollar has been navigating a bearish range on Wednesday, picking up pace after the US Treasury announced a buyback of up to $6 billion in 10- to 20-year T-bonds. Despite this development, traders have remained cautious due to ongoing tensions in the Middle East.
On Thursday, September 10, investors are focused on the release of US inflation data, specifically Producer Prices, which will be closely watched for its impact on monetary policy decisions. The US Dollar Index (DXY) has been trading below the 99.00 level and is expected to remain under pressure as traders await the release of key economic indicators.
The EUR/USD currency pair has maintained its bid bias, reaching multi-day peaks above 1.1650. The European Central Bank (ECB) is widely anticipated to hike its rates by 25 basis points, which could further boost the euro. Meanwhile, the GBP/USD has resumed its upward trend, reaching multi-day tops around 1.3570.
The only release from the UK will be the RICS House Price Balance, while in Japan, the BoJ's Masu is scheduled to give a speech after the publication of the weekly Foreign Bond Investment figures. The AUD/USD has clinched fresh highs above 0.7240, levels last seen in early May.
WTI crude oil prices have flirted with four-month highs near $97.00 per barrel, driven by persistent geopolitical tensions in the Middle East. Gold has managed to regain its footing above the $4,400 mark per troy ounce, thanks to a mildly offered US Dollar and ongoing concerns over global economic stability.