Forex Today: Concerns over the US economy are picking up pace

The US Dollar remained well on the defensive, dropping to the area of multi-week lows as investors' jitters over the health of the US economy gathered extra steam, while uncertainty around tariffs also contributed to the cautious stance.

Here is what you need to know on Wednesday, February 26:

The US Dollar Index (DXY) left behind two daily gains in a row and slipped back to the area of two-month lows amid diminishing US yields across the curve. The weekly MBA Mortgage Applications are due in the first turn, seconded by New Home Sales and the EIA's weekly report on US crude oil inventories. In addition, the Fed's Barkin and Bostic are due to speak.

EUR/USD rose further and tested levels beyond 1.0500 in response to the intense sell-off in the Greenback. Germany's Gfk Consumer Confidence will be in the spotlight.

GBP/USD set aside part of the recent weakness and revisited the upper end of the range north of 1.2600. The CBI Distributive Trades will be the only data release across the Channel, seconded by the speech by the BoE's Pill.

USD/JPY accelerated its decline to levels last seen in early December near 148.50. Next on tap on the Japanese calendar will be the final prints of the December Coincident Index and Leading Economic Index.

Tariff concerns weighed on AUD/USD and prompted it to recede for the third straight day and revisit the 0.6320 region. Next of note in Oz will be the RBA's Monthly CPI Indicator, and Construction Done figures, both expected on February 26.

Prices of WTI tumbled to fresh yearly lows in the sub-$69.00 zone per barrel on the back of concerns over the health of the US economy and further US tariffs.

Gold prices suffered some profit taking and dropped to multi-day lows, breaking below the key $2,900 mark per ounce troy at the same time. Silver prices retreated to two-week lows near the $31.00 mark per ounce.