Forex Today: US data and Fedspeak come to the fore

The US Dollar kicked off the new trading week slightly on the defensive, managing to rebound from fresh multi-week lows amid tariff concerns, lower yields, and renewed jitters on the health of the US economy.

Here is what you need to know on Tuesday, February 25:

The US Dollar Index (DXY) dropped to new two-month lows, trading at shouting distance from the key support at the 106.00 mark. The Consumer Confidence gauged by the Conference Bord will take centre stage seconded by the FHFA's House Price Index, The Richmond Fed Manufacturing Index, and the API's weekly report on US crude oil inventories. In addition, the Fed's Logan, Barr and Barkin are due to speak.

EUR/USD briefly surpassed the 1.0500 barrier on fresh optimism following the results of the German election on Sunday. The final Q4 GDP Growth Rate in Germany will be at the centre of the debate, along with the ECB's Negotiated Wage Growth and the speech by the ECB's Nagel.

GBP/USD resumed its uptrend on Monday, rising to new highs in levels closer to the 1.2700 hurdle. The CBI Distributive Trades will be the only data release across the Channel, seconded by the speech by the BoE's Pill.

After three daily pullbacks in a row, USD/JPY finally regained the smile and charted decent gains to the proximity of the key 150.00 barrier. Next on tap on the Japanese calendar will be the final prints of the December Coincident Index and Leading Economic Index.

AUD/USD treaded water around 0.6350 following an unsuccessful attempt to hit the 0.6400 level earlier in the day. The RBA's Jones will speak on Tuesday, while the RBA's Monthly CPI Indicator, and Construction Done figures, are expected on February 26.

Once again, supply concerns lent some much-needed oxygen to crude oil prices, prompting the barrel of American WTI to clock acceptable gains above the $70.00 mark.

Prices of Gold advanced to a record high closer to $2,960 per ounce troy on the back of intense uncertainty surrounding US tariffs. Silver prices added to Friday's pullback, reaching multi-day lows near the £2.00 mark per ounce.