Forex Today: Possible ECB Moves in Focus

Mixed moves in US Treasury yields across the curve and the latest FOMC event remained in focus for investors on Wednesday, with the US Dollar (USD) facing renewed downward pressure.

Renewed selling has brought the US Dollar Index (DXY) back towards the 102.00 support zone, ending a three-day run of gains. The forthcoming releases include the regular weekly Initial Jobless Claims, PCE, Personal Income/Spending and the preliminary Q3 GDP Growth Rate.

After five successive daily declines, EUR/USD has recovered to test the 1.1170 region. The ECB is expected to leave its policy rate unchanged at its meeting, while the final Consumer Sentiment reading for the euro area is also due.

A solid rebound from fresh multi-day lows near 1.3270 has taken GBP/USD back towards the 1.3340 area, with the pair posting modest gains. Scheduled releases comprise the BoE’s Consumer Credit data, Mortgage Approvals/Lending, and the BoE’s M4 Money Supply and Net Lending to Individuals figures.

Having failed to maintain its rally beyond the key 158.00 resistance level, USD/JPY finished the day slightly lower, close to 157.80. The data calendar includes the regular weekly Foreign Bond Investment figures and the Consumer Confidence reading.

Fresh five-week highs have accompanied further gains in AUD/USD, bringing the pair up against its key 200-day SMA near 0.7060. Australia’s only scheduled data release is Export/Import Prices.

As traders weighed renewed concerns over Middle East supply, front-month WTI futures (December contract) recovered upward momentum and climbed above $103.00 per barrel to weekly highs.

Higher crude oil prices and a solid rise in US Treasury yields across the curve have weighed on Gold, which has returned to losses after two consecutive daily gains and is trading close to $4,000 per troy ounce.