US Wrap: Forex traders sidelined ahead of release of US inflation data
- US dollar drifted sideways ahead of the release of inflation data for the US
- The inflation data could decide if EURUSD retests support or starts to rebound
- Treasury yields ticked lower as Wall Street closed on a mixed note
- Crude oil prices slipped and gold recovered earlier losses
The antipodean currencies eked out tiny gains while USDCAD failed to break support at 1.2810. President Trump’s decision to tie the tariff exemptions to a successful renegotiation of the NAFTA trade pact has limited any USDCAD downside.
Thursday Focus: The US CPI release for February (which is forecast at 2.2%, up from 2.1% in January, y/y) will determine if EURUSD retests support in the 1.2160-1.2200 area, or sparks a rebound to 1.2340.
– Edited by Robert Ryan
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Michael O'Neill is an FX consultant, currency strategist and author of the Trade of the Day at Loonieviews.net. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.