Forex Today: Policy divergence and geopolitics drive the sentiment

Dwindling geopolitical jitters lent much-needed oxygen to the risk-linked galaxy at the beginning of a week dominated by upcoming US inflation readings as well as corporate earnings reports.

Here is what you need to know on Tuesday, April 23:

In quite an uneventful start to the week, the Greenback printed humble gains and kept the USD Index (DXY) afloat in the low 106.00s. On April 23, flash PMIs are due, seconded by New Home Sales.

EUR/USD retreated marginally and hovered around the 1.0650 region despite the dominating risk-on mood. The euro calendar will show preliminary PMIs in Germany and the broader euro bloc on April 23.

GBP/USD magnified its decline and revisited the sub-1.2300 area for the first time since mid-November. Advanced PMIs and Public Sector net borrowing are due in the UK docket on April 23.

USD/JPY advanced to a new 34-year high around 154.85 amidst the continuation of the broader consolidative mood. There are no data releases scheduled in the Japanese docket on April 23.

AUD/USD regained composure and rose to two-day highs in an auspicious beginning of the week. The Judo Bank flash PMIs are expected in Australia on April 23.

WTI ended the session barely changed after bottoming out in new lows in the sub-$81.00 region.

Declining geopolitical concerns dragged Gold prices to multi-session lows near $2,330 per troy ounce. In the same line, Silver prices collapsed more than 5% and revisited the boundaries of the $27.00 mark per ounce.