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Forex Today: Investors’ attention is expected to be on US CPI

by FX BrokerNews

After the publication of February’s Non-Farm Payrolls (NFP), the US Dollar experienced a renewed upward momentum, propelling the USD Index (DXY) from recent multi-week lows. This movement occurred simultaneously with a decline in the risk-associated assets, setting the tone for the week ahead of the highly anticipated release of US inflation figures on March 12.

Here is what you need to know on Tuesday, March 12:

The US Dollar staged a modest recovery, leading to a bounce in the USD Index (DXY) just below the 103.00 level on Monday, partially reversing its recent multi-day decline. The spotlight for March 12 is on the release of US inflation figures measured by the Consumer Price Index (CPI) for February.

EUR/USD experienced additional losses and extended a minor retracement from Friday, although it held above the 1.0900 level. Germany’s final Inflation Rate is the sole release in the eurozone on March 12.

GBP/USD faced notable selling pressure and briefly breached the 1.2800 support, marking its first daily decline after six consecutive sessions of gains. In the UK, the labor market report takes center stage on March 12.

Persistent yen strength kept USD/JPY on the defensive, revisiting the vicinity of six-week lows around 146.50. On March 12, Japan is set to release Producer Prices and the BSI Large Manufacturing index.

AUD/USD relinquished some of its recent gains and retreated from last week’s highs near 0.6670 amid a Dollar recovery, with investors seemingly pricing in another “on-hold” decision by the Reserve Bank of Australia (RBA) on March 19.

WTI crude oil prices maintained their consolidation around the critical 200-day Simple Moving Average (SMA) in the $78.00 region per barrel. The next event for the commodity is the weekly report on US crude oil inventories tracked by the American Petroleum Institute (API) on Tuesday.

Gold saw cautious trading on Monday, hovering around the recent all-time peak near $2,190 per troy ounce. Similarly, silver resumed its monthly rally and retested the $24.50 region per ounce.

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