Forex Today: Attention shifts to Chair Powell’s testimony

The US Dollar maintained its bullish bias at the start of the new trading week, as investors remained concerned about the likelihood of a global trade war ahead of Chief Powell’s key testimony.

Here is what you need to know on Tuesday, February 11:

The US Dollar Index (DXY) extended its recovery north of the 108.00 hurdle amid tariff concerns and despite the downward bias in US yields. Chair Powell’s semi-annual testimony grabs all the attention seconded by the NFIB Business Optimism Index and the speeches by the Fed’s Hammack, Bowman and Williams.

EUR/USD extended its leg lower and revisited the sub-1.0300 region on the back of further threats of US tariffs and the stronger Greenback. The ECB’s Schnabel is due to speak.

GBP/USD traded with a bearish bias and retested the area of multi-day lows near 1.2360. The BRC Retail Sales Monitor will be released prior to speeches by the BoE’s Mann and Bailey.

USD/JPY regained some extra traction on Monday, reclaiming the area above the 152.00 barrier following Friday’s two-month lows.

AUD/USD reversed two consecutive daily pullbacks and continued to retarget the key resistance area around 0.6300. The Westpac Consumer Confidence will be published seconded by the Business Confidence gauge by NAB.

Prices of WTI added to Friday’s retracement and surpassed the $72.00 mark per barrel despite the strong Dollar and threats of further tariffs.

Prices of Gold reached an all-time peak past the $2,900 mark per ounce troy as the implementation of further tariffs could spark a global trade war. Silver prices followed suit and reclaimed the area beyond the $32.00 mark per ounce.