Forex Today: US inflation in the limelight

The US Dollar experienced a slight decline on Friday, returning to the sub-102.00 region as investors remained cautious ahead of the release of US inflation data. This downward pressure on the USD was fueled by speculation over a potential US-Iran agreement, which weighed heavily on crude oil prices.

The EUR/USD pair managed to regain upside traction, overcoming two consecutive daily drops and challenging the key 1.1200 barrier. Meanwhile, the GBP/USD pair showed marked gains, reclaiming the area beyond 1.3400 after two straight daily losses. The AUD/USD pair also rebounded near the 0.6900 mark, supported by strong sentiment surrounding the risk complex and China's extension of the suspension of 24% tariffs on US goods.

Gold prices climbed to two-day highs above $4,100 per troy ounce, buoyed by the US Dollar's weakened stance, declining Treasury yields, and further negative performance of crude oil prices. Risk-off sentiment was building in the cryptocurrency market following last week's correction, linked to Democrats' victory in the US midterms. Nvidia's CEO, Jensen Huang, faced an apology from employees due to reports suggesting he was a target of a foreign intelligence operation.