Forex Today: PMIs take centre stage!

Modest selling pressure late in Thursday’s North American session prevented the US Dollar (USD) from sustaining its recovery. Nevertheless, the Greenback has  ultimately extended its multi-day correction further, despite mounting geopolitical tensions and a broad flight to safety.

After nearing resistance at 102.00, the US Dollar Index (DXY) surrendered its early gains as investors weighed the fragile geopolitical backdrop and fresh uncertainty surrounding the AI sector. Rounding off the economic calendar will be the flash S&P Global Manufacturing and Services PMIs, alongside the final U-Mich Consumer Sentiment reading.

With its recovery losing steam, EUR/USD has edged back towards three-day lows near 1.1190. The week’s domestic data releases conclude with the preliminary S&P Global Manufacturing and Services PMIs for Germany and the eurozone.

Modest gains have kept GBP/USD supported, taking its weekly rebound above 1.3400. The UK calendar features the flash S&P Global Manufacturing and Services PMIs, Retail Sales and GfK Consumer Confidence.

Safe-haven demand has bolstered the Japanese Yen, pushing USD/JPY towards three-week lows around 156.70. Japan is due to release its Inflation Rate and the flash S&P Global Manufacturing and Services PMIs.

After failing to build on its rebound above 0.7040, AUD/USD has fallen sharply back towards 0.7000. Australia’s next scheduled releases are the preliminary S&P Global Manufacturing and Services PMIs.

Renewed tensions surrounding the Middle East crisis have lifted front-month WTI futures (December contract). Following three consecutive daily declines, the contract has recovered its footing and is testing the psychological $100.00 threshold once more.

Pressure from inflation concerns, the prospect of further Federal Reserve tightening and a solid US Dollar recovery has driven Gold down to fresh two-month lows near the key level of $4,000 per troy ounce.