Forex Today: US Dollar pulls away from multi-month highs ahead of mid-tier data

Here is what you need to know on Thursday, April 18:

The US Dollar (USD) stays under modest selling pressure in the early European session on Thursday. The US economic calendar will offer weekly Initial Jobless Claims, Philadelphia Fed Manufacturing Survey for April and Existing Home Sales data for March. Several Federal Reserve (Fed) policymakers are scheduled to deliver speeches during the American trading hours.

The USD Index stays in negative territory below 106.00 after touching its highest level since early November at 106.50 on Wednesday. Following a sharp decline midweek, the benchmark 10-year US Treasury bond yield fluctuates below 4.6%. Meanwhile, US stock index futures trade in positive territory, reflecting an improving risk mood in the European morning. The US and the EU are expected to expand sanctions against Iran and markets seem to be optimistic about an avoidance of further escalation of the conflict between Iran and Israel.

During the Asian trading hours, the data from Australia showed that the Unemployment Rate edged higher to 3.8% in March from 3.7%, while the Employment Change came in at -6.6K, missing the market expectation for an increase of 7.2K. After snapping a three-day losing streak on Wednesday, AUD/USD stretched higher and was last seen trading in positive territory at around 0.6450.

Australian Dollar holds position amid tepid US Dollar ahead of Fedspeak.

USD/JPY staged a downward correction and closed in negative territory on Wednesday. The pair inched slightly lower in the Asian session and was last seen trading slightly above 154.00. National Consumer Price Index (CPI) data will be featured in the Japanese economic docket in the early hours of the Asian session on Friday.

Gold fell nearly 1% on Wednesday but found support near $2,360. XAU/USD gathered bullish momentum early Thursday and recovered toward $2,380.

EUR/USD rebounded decisively and gained 0.5% on Wednesday. The pair holds its ground early Thursday and trades slightly below 1.0700. Eurostat will publish Construction Output data for February later in the session. 

GBP/USD registered marginal gains on Wednesday and started to fluctuate in a narrow range above 1.2450 on Thursday. The UK's Office for National Statistics will release Retail Sales data for March in the early European session on Friday.