Forex today was characterized by the broad-based US dollar recovery that triggered a fresh selling-wave across the board in Asia this Thursday. The rebound in the Dollar was mainly driven by a recovery in Treasury yields across the curve while the extension of the corrective slide in GBP/USD from the 2019 tops also added to the uptick in the buck.
Markets remain focused on the Brexit-related developments amid a no deal Brexit rejected by the UK lawmakers and the Brexit extension of 2 months seeming the most likely bet, as rumour mills talk of the third meaningful vote on the UK PM May’s Brexit deal next week. The Euro tracked the correction in the Pound and marched towards the 1.13 handle, and now is struggling for a recovery. USD/JPY caught some fresh bids as a combination of supporting factors assisted the pair to make a fresh attempt to build on the momentum further beyond the very important 200-day SMA.
The European calendar is light today, with the German final CPI release already dropped in at 07:00 GMT, followed by the Swiss producers and import prices at 07:30 GMT.
In the NA session, the US weekly jobless claims and import prices are due at 12:30 GMT. At 14:00 GMT, the US new home sales data will be eyed for fresh dollar trades.
In the American afternoon, at 19:00 GMT, the UK parliamentary vote on Article 50 extension is scheduled.
Oil prices trade higher on Thursday as the U.S. reportedly plans to cut more exports of crude from Iran starting in May. A complete halt of Iran’s oil in the short term is unlikely however, as the Trump administration remained concerned that it would trigger a global oil price spike. Yesterday, crude prices surged to four-month high after EIA reported surprise drawdown in weekly inventory levels by 3.9 million barrels against a forecast of 2.66 million increase.
The precious metal failed to capitalize on the recent positive momentum and erased the previous session's goodish up-move to 1-1/2 week tops, shrugging of weaker-than-expected Chinese industrial production data and the prevalent cautious mood. A goodish pickup in the US Treasury bond yields turned out to be one of the key factors prompting some fresh selling around the non-yielding yellow metal. This coupled with a modest US Dollar demand exerted additional downward pressure on the dollar-denominated commodity.