Forex Today: What if the ECB...?

There was no timeout for the US Dollar's rally on Wednesday, which extended its gains for the sixth consecutive day and hit new two-month highs despite global yields retreated further.

Here is what you need to know on Thursday, October 17:

The US Dollar Index (DXY) rose further to multi-week tops above 103.50 on the back of further weakness in the risk complex. Retail Sales will be at the centre of the debate along with the Philly Fed Manufacturing Index, usual weekly Initial Jobless Claims, Industrial and Manufacturing Production, Business Inventories, the NAHB Housing Market Index, and the weekly report by the EIA.

EUR/USD extended further its multi-day leg lower and broke below the 1.0900 support with marked conviction. The ECB will decide on rates seconded by the usual press conference by President Christine Lagarde. Additional data will include Balance of Trade results and the final Inflation Rate, along with the speech by the ECB's McCaul.

GBP/USD dropped markedly and cleared the key 1.3000 support in the wake of lower UK inflation data. The BoE's Wood is due to speak.

USD/JPY remained choppy and always below the 150.00 barrier, advancing modestly on Wednesday following Dollar's gains and dovish remarks from the BoJ's Adachi. The Balance of Trade results and the Tertiary Industry Index will be published.

AUD/USD retreated to multi-week lows after breaching the key 0.6700 support, shifting its focus to the key 200-day SMA. All the attention shifts to the release of the Australian labour market report.

Shrinking geopolitical effervescence and omnipresent demand concerns from China weighed further on WTI prices, motivating them to break below the $70.00 mark once again on Wednesday.

Lower yields and prospects of further easing by central banks lent extra wings to Gold prices, pushing them to the area of all-time highs around $2,685 per ounce troy. Silver prices added to Tuesday's advance and climbed to six-day tops past the $32.00 mark per ounce.