Market Drivers; US Session – Market Focus: US and Australian Inflation, Jobs Data Key Drivers

Today’s forex market is heavily focused on key economic data releases, with US and Australian inflation figures and jobs data taking center stage. The Asian session will make available key Australian inflation expectations awaited by market players.

The US dollar experienced a slight recovery from recent multi-month lows, although persistent concerns regarding tariff uncertainties and potential US recession continue to cast a shadow over market sentiment. Specifically, the US Dollar Index (DXY) rebounded to the 103.80 zone, bolstered by rising yields, with the Producer Price Index and Initial Jobless Claims data being closely monitored.

In the Eurozone, the EUR/USD pair faced resistance and retreated below 1.0900 as the dollar strengthened, with attention now directed towards Industrial Production figures and speeches from ECB officials.

The British pound, GBP/USD, briefly approached the 1.3000 level before pulling back, with the UK’s RICS House Price Balance being the primary economic release.

The USD/JPY pair continued its upward trajectory, surpassing the 149.00 mark, while the Australian dollar, AUD/USD, defied dollar strength and trade concerns to climb above 0.6300, with Australian building permit data and an RBA speech on the agenda.

In the commodities market, WTI crude oil rose to a three-day high near $68.00 per barrel, despite prevailing dollar strength and trade war worries. Gold prices surged to a two-week high around $2,940 per troy ounce, driven by tariff anxieties and lower-than-expected US CPI, while silver prices approached their yearly peak, exceeding $33.00 per ounce.