Forex Today: Focus shifts to Warsh and more US data

The US Dollar (USD) experienced strong and renewed downside pressure on Thursday, briefly touching multi-day lows due to a decline in US Treasury yields and a cautious tone among market participants. The US Dollar Index (DXY) broke below the 102.00 support level, reaching multi-day lows as US Treasury yields declined across the board.

Additional economic data to be released include Export/Import Prices, Industrial/Manufacturing Production, Capacity Utilisation, and Net Long TIC Flows. Fed Chair Jerome Warsh will speak at the IMF-World Bank annual meetings in Singapore.

The EUR/USD pair reached weekly tops above the 1.1200 barrier, lifted by the stronger performance of the USD. Conversely, GBP/USD recovered from Wednesday's deep pullback, challenging multi-day highs around 1.3270. Following the UK calendar, investors will pay attention to remarks from the BoE’s Bailey. USD/JPY continued its correction, dropping to the 157.50 region amid fresh USD selling. The weekly Foreign Bond Investment figures will be the sole data release domestically.

The AUD/USD pair fell to three-month lows, breaking the 0.6900 level, as disappointing Australian labor market data weighed on the currency. Traders are closely watching Monday's release of China's GDP data, including Industrial Production, Retail Sales, and the Unemployment Rate. WTI futures have gained momentum, approaching four-week highs near the $97.00 level per barrel due to ongoing Middle East tensions and supply concerns.

Gold traded with modest gains, staying below the $4,200 mark per troy ounce amid fresh USD weakness and declining US Treasury yields. Born and raised in Argentina, trader Pablo has been following the FX markets and trading since his college years. AUD/USD remained on the defensive, slipping close to the key 0.6900 support zone ahead of Asian market open.

With discouraging Australian labor market data, the Aussie struggled to benefit from the USD's retreat. USD/JPY extended its previous day's decline from a three-week high, attracting selling and slipping below 158.00 during the Asian session. Market participants remain vigilant for potential intervention by authorities to support the Japanese Yen.

Meanwhile, the US Dollar rebounded from Wednesday's gains, driven by retreating US bond yields following talk of China bond-buying, further pressuring the pair. Gold regained momentum, moving above the $4,170 level per troy ounce on Thursday, as the USD weakened and Treasury yields fell amid cautious market sentiment ahead of the Fed's Warsh speech on Friday.