This is what you need to know to trade today Wednesday, August 11:
Cautious optimism prevails in the market amid the passage of the US $ 1 trillion infrastructure bill and outbreaks of the Delta variant in regions of the US and Asia. Investors, meanwhile, are also getting cautious ahead of important US Consumer Price Index (CPI) data to be released on Wednesday at 12.30 GMT.
Asian indices are trading mixed, while S&P 500 futures post small losses. The U.S. Treasury yields keep pushing higher, with 10-year rates reaching the highest level since early July. The US dollar consolidates the rise in expectations of a reduction in the bond purchase program that may come earlier than expected, in light of strong employment data.
The optimistic comments from the Fed also continue to prop up demand for the dollar. The President of the Chicago Fed, Charles Evans said he expects more substantial progress by the end of the year in reducing assets.
Later this Wednesday, Atlanta Fed Chairman Raphael Bostic will speak on “The Federal Reserve’s role in making this an economy that works for everyone” at 2.30pm GMT. Kansas City Fed President Esther George will speak on “A Perspective from the Federal Reserve Bank of Kansas City” at 16:00 GMT.
The oro is making another recovery attempt towards $ 1750. The WTI It is around $ 68, reversing part of Tuesday’s rebound, despite the reduction in API crude reserves.
Within the G10 currencies, moderate trading ranges are observed as the US dollar remains stable after the recent rise.
The AUD/USD It is the weakest pair and remains pressured below 0.7350 as Melbourne extended the COVID lockdown for another seven days. New South Wales (NSW) continues to report more than 300 new cases daily.
EUR/USD it remains trading slightly above 1.1700, at fresh five-month lows, in response to stronger yields and the dollar. Meanwhile, the German ZEW poll disappointed on Tuesday.
GBP/USD remains pressed toward 1.3800 amid looming Brexit concerns, outweighing optimism over vaccination within the country. The UK government could likely extend emergency powers for trucks heading to France in a move to use Brexit rights, “indicating that the government expects more disruptions between channels,” reports The Guardian.
The cryptocurrencies remain at higher levels, with Bitcoin languishing between $ 45,000 and $ 46,000.
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