This is what you need to know to trade today friday february 11:
The dollar outperformed rivals on Thursday as US Treasury yields rose after US data showed the annual Consumer Price Index rose to a new four-decade high of 7.5%. in January. The preliminary Consumer Sentiment Index for February from the University of Michigan is the most relevant data on the US economic docket on Friday. Before the weekend, the FOMC will present its semi-annual Monetary Policy Report to Congress.
CME Group’s FedWatch tool shows that markets are pricing in a 90% chance of a 50 basis point interest rate hike in March. The 10-year US Treasury bond yield, which gained nearly 5% on Thursday, is at its highest level since August 2019 above 2%. Meanwhile, St. Louis Fed President James Bullard told Bloomberg News he would prefer a 50 basis point rate hike in March, adding that he would like the Fed to raise its rate policy by 100 basis points to July. Rising expectations of aggressive policy tightening weighed heavily on stocks, with the Nasdaq Composite down more than 2%, the SP500 down 1.8% and the CBOE Volatility Index (VIX) up nearly 20%.
The EUR/USD remains under bearish pressure below 1.1400 early in the European session. Data from Germany showed that the Harmonized Index of Consumer Prices in January rose 5.1% year-on-year, matching the advance estimate and market expectations.
The GBP/USD it is heading down towards 1.3500 after the mixed data. GDP grew 1% in the fourth quarter, slightly below the estimated 1.1%. For its part, industrial and manufacturing production grew by 0.4% and 1.3%, respectively, in 2021.
The USD/JPY rose above 116 for the first time since early January and appears to have entered a consolidation phase.
The gold advanced to its strongest level in two weeks above $1,840 on Thursday, but ended up closing the day in negative territory amid rising US bond yields. XAU/USD is on the defensive on Friday and pushes lower towards $1,820.
The risk-averse market environment hurt cryptocurrencies on Thursday and the Bitcoin lost 2%. BTC/USD is trading in the red near $43,000 in European early morning. ethereum it moderated 5% on Thursday and was last seen testing support at $3,000.
Source: Fx Street
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