Forex Today: US inflation returns to the spotlight

April 2025 levels were revisited by the US Dollar (USD). Its bullish run continued for another day as persistent speculation about further Federal Reserve tightening led investors to consider even a half-point interest rate increase.

A break above 103.00 has taken the US Dollar Index (DXY) to fresh 18-month highs. Broad weakness across risk assets and increased expectations of another Fed rate rise at the December meeting have supported the advance. Producer Prices data and speeches from the Fed’s Williams, Bowman, and Daly round off the calendar.

Persistent US Dollar strength has pushed EUR/USD to fresh lows around 1.1050, extending its decline. The EMU’s Balance of Trade figures are scheduled for release, followed by the preliminary Q3 Employment Change reading and the bloc’s second Q3 GDP Growth Rate estimate. Speeches from the ECB’s Elderson and Schnabel are also on the agenda.

Near the 1.3200 support zone, GBP/USD has reached multi-week lows. The next major UK release is the labour market report on November 17.

Strong US Dollar momentum has brought USD/JPY within pips of the key 160.00 barrier. Japan’s next notable release is the preliminary Q3 GDP Growth Rate on November 16, alongside final Industrial Production data and Capacity Utilisation readings. 

For the first time since January, AUD/USD briefly broke below support at 0.6800. The pair declined for a third consecutive day as the Greenback gained further momentum. Minutes from the RBA are due on November 17.

Between $85.00 and $87.00 per barrel, front-month WTI futures (December contract) have lacked a clear direction. Trading has remained closely tied to developments, or the absence of them, in the Middle East conflict.

Further US Dollar gains and higher US Treasury yields have kept Gold under sustained selling pressure, driving it towards $3,850 per troy ounce on Thursday. The rise in yields has been particularly pronounced at the short end and in the belly of the curve.