Forex Today: Tariff developments and inflation in Germany come to the fore

The US Dollar gave back a big chunk of Monday's strong gains on Tuesday, as markets weighed the implications of the latest US-China trade deal, easing inflationary pressures, and growing speculation that the Federal Reserve could cut interest rates in the third quarter.

Here is what you need to know on Wednesday, May 14:

The Dollar Index (DXY) lost the grip and retreated to the 101.00 region on Tuesday on the back of the improved sentiment around the risk-linked universe. The MBA Mortgage Applications will come next, seconded by the EIA's weekly report on US crude oil inventories.

EUR/USD bounced off multi-week lows, reclaiming the 1.1180 zone amid renewed weakness in the Greenback. Germany's final Inflation Rate is due on May 14.

GBP/USD gathered steam and rebounded markedly just above the 1.3300 hurdle in tandem with the generalised better tone in the riskier assets. Next of note on the UK docket will be the release of the preliminary Q1 GDP Growth Rate, followed by Business Investment, Goods Trade Balance, Industrial and Manufacturing Production, Construction Output, and Labour Productivity.

USD/JPY came under renewed selling pressure after hitting seven-week peaks around 148.60 in the previous day, slipping back to the vicinity of 147.40 on Tuesday. Next on tap on the domestic calendar will be the publication of Producer Prices.

AUD/USD managed to set aside Monday's deep sell-off, surpassing once again the key 0.6400 barrier and its 200-day SMA. Home Loans, Investment Lending for Homes, and the Wage Price Index are all due in Oz.

Prices of WTI rose for the fourth day in a row, approaching the $64.00 mark per barrel as the positive mood prevailed among traders following the US-China deal, while increasing supplies limited the commodity's upside potential.

Gold prices navigated a narrow range around the $3,240 zone per troy ounce amid the upbeat sentiment on the trade front and renewed selling pressure hitting the US Dollar. Prices of the ounce of Silver failed to extend the initial bull run north of the $33.20 zone, receding to nearly $32.50 as the day progressed.