This is what you need to know to trade today Thursday, January 13:
The dollar faced heavy selling pressure in the second half of the day on Wednesday after data released by the US Bureau of Labor Statistics showed the annual Consumer Price Index (CPI) rose to 7%, as expected. After losing more than 0.6%, the US Dollar Index is having a difficult time recovering and continues to fall below 95.00. Investors await the December Producer Price Index (PPI) and weekly US jobless claims data. In addition, the European Central Bank will publish its Economic Bulletin at the European session.
US Inflation Analysis: Strong Figures On All Fronts Consolidate Fed Action, Dollar Prepares To Rebound
Although inflation reached its highest level in nearly four decades, the dollar suffered losses against its rivals. Following the cautious tone of FOMC Chairman Jerome Powell regarding the liquidation of the balance sheet, the fact that inflation remained within expectations appears to have hurt the dollar. Meanwhile, CME Group’s FedWatch tool shows that markets value a 21.2% probability that the Fed will leave its policy rate unchanged in March, compared to 17.9% on Wednesday.
The EUR/USD it rose strongly on Wednesday and broke above 1.1400. The pair was last seen trading at its highest level since mid-November at 1.1450.
The GBP/USD it closed the previous two trading days in positive territory and gained over 100 pips in that period. The pair continues to rise in the European session and remains comfortably above 1.3700.
The USD/JPY It fell to the 114.50 zone, but the 10-year US Treasury yield is posting modest daily gains of around 1.75% on Thursday, limiting the pair’s losses for the time being.
After surpassing $ 1,800 earlier in the week, the oro it posted impressive gains on Tuesday and continues to climb on Wednesday. In the early part of Thursday, the XAU / USD is moving sideways above $ 1,820.
The Bitcoin It gained more than 2% for the second day in a row on Wednesday, but appears to have lost its bullish momentum near $ 44,000. The Ethereum it extended its rebound on Wednesday and was up 4% before settling at around $ 3,330.
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