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Dollar stays rangebound as US data focus and risk tensions persist
The dollar held the 99.50 to 99.60 band as EUR/USD stayed near 1.1570, while USD/JPY briefly fell below its 200-day level amid renewed yen intervention chatter.
The US dollar traded with high volatility on Wednesday, but stayed rangebound within the US Dollar Index, which held the 99.50 to 99.60 band after moving to fresh three-week highs earlier in the session. FXStreet also linked the day to ongoing US-Iran tensions, speculation about possible Japanese FX intervention, and shifting expectations for what the Federal Reserve may do over the coming months.
Market attention centered on scheduled US releases, including weekly Initial Jobless Claims and the ISM Services PMI, along with Balance of Trade data, quarterly Unit Labor Costs, and speeches by Fed officials Waller and Hammack. In the euro area, traders looked ahead to additional S&P Global Services PMI prints for Germany and the euro zone, plus euro-zone Producer Prices.
In major pairs, EUR/USD showed a slight downward bias and eased toward two-week lows near 1.1570 before bouncing. GBP/USD failed to hold above 1.3500, slipping to around 1.3470, while USD/JPY dropped sharply and briefly breached its 200-day moving average near 158.40 on chatter about another yen-support move by the BoJ and MoF.
Commodities and rates also moved alongside currencies, with WTI jumping above $92.00 per barrel to fresh six-week highs on US-Iran-Hormuz concerns. Gold turned higher, rebounding toward the $4,400 per troy ounce area, while the daily uptick in the precious metal coincided with modest losses in the greenback and mixed US Treasury yields.
Latest closeGold $4,431.70 ▲1.9%|WTI crude $90.70 ▲0.5%|EUR/USD 1.159 ▼0.1%