Forex Today: The release of U.S. CPI data steals the show

Today, 16:49 by Pablo Piovano

The Dollar added to recent gains amid rising yields and intense caution ahead of the release of U.S. inflation figures measured by CPI on Wednesday. Here’s what you need to know on Wednesday, December 11: The U.S. Dollar Index (DXY) advanced for the third consecutive day, extending the move beyond the 106.00 barrier ahead of the crucial U.S. CPI data release on Wednesday. The U.S. Inflation Rate will be the standout event in the FX universe, followed by weekly MBA mortgage applications, as well as the EIA's weekly report on U.S. crude oil inventories. The EUR/USD added to weekly losses and briefly broke through the 1.0500 support to reach new four-day lows. Next on the euro's agenda will be the ECB meeting on December 12. The GBP/USD maintained its bullish bias, adding to Monday's advance and revisiting the 1.2780 area. The RICS House Price Balance is next on the other side of the Channel on December 12. The bullish momentum of USD/JPY gained additional speed and reclaimed the area beyond the 152.00 barrier, while also challenging the key 200-day SMA. Japan's Producer Prices, Reuters' Tankan index, and the Large Manufacturing BSI index will be released. The AUD/USD remained well defensive below the 0.6400 support as investors assessed the moderate tilt in the RBA meeting. All attention will be on the release of the Australian labor market report on December 12.