Market Drivers; US Session, April 18

Further hawkish comments from Fed speakers boosted the US dollar and sparked a decent bounce in US yields, while the ECB’s officials maintained dovish stance and continued to advocate the start of the central bank’s rate cut and monetary easing next the summer.

Developments In Forex Space

The US dollar regained upside traction and lifted the USD Index (DXY) back to the area beyond 106.00. There will no data releases on the US docket on April 19 other than the speech by Chicago Fed A. Goolsbee.

EUR/USD resumed its decline and revisited the 1.0640 zone after faltering around 1.0690 during early trade. The euro calendar will be empty at the end of the week.

In line with its risk-linked peers, GBP/USD headed southwards and retested the 1.2430 zone. Retail Sales in March and speeches by BoE’s Ramsden and Breeden are also due on April 19.

USD/JPY kept its recent consolidative mood well and sound above the 154.00 hurdle. In Japan, the March Inflation Rate is expected on April 19.

AUD/USD succumbed to the Dollar’s rebound and receded to the low 0.6400s. The are no data releases in Australia on April 19.

Commodities

Gold prices reversed two daily pullbacks in a row on the back of persistent geopolitical concerns. Silver prices added to Wednesday’s small uptick and maintained the trade above the $28.00 mark per ounce.

WTI extended its drop for the third session in a row following demand concerns, the stronger dollar and higher US crude oil inventories.

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