This is what you need to know to trade today Thursday April 14:
The US dollar weakened against its main rivals on Wednesday amid improving market sentiment and falling US Treasury yields. After snapping a nine-day winning streak, the US dollar index DXY dollar continues to move lower early on Thursday. The common currency holds its ground ahead of the expected monetary policy announcement from the European Central Bank (ECB). Later in the day, the US economic calendar will feature the retail sales report for March and weekly initial jobless claims data.
See: ECB Preview: Lagarde may push euro aggressively, creating a selling opportunity
US data showed on Wednesday that annual producer PPI inflation rose to 11.2% in March from the 10.3% seen in February. Although this figure was higher than the market expectation of 10.6%, Wall Street’s main indices posted strong daily gains and the benchmark 10-year US bond yield closed in the red for the second day in a row.
Meanwhile, US stock index futures are up 0.2%-0.4%, suggesting sentiment is likely to remain risk-positive. However, it is worth noting that a recovery move could be hard to come by. amid coronavirus-related lockdowns in China and ongoing conflict between Russia and Ukraine.
The USD/CAD lost almost 100 pips on Wednesday and closed below 1.2600. The pair is trading in negative territory around 1.2550 in European morning. The Bank of Canada (BoC) raised its monetary policy rate by 50 basis points to 1%. At the press conference, Bank of Canada Governor Tiff Macklem said the central bank is willing to act with the necessary force to deal with inflation.
The EUR/USD manages to ride Wednesday’s rally and post modest daily gains above 1.0900.
The GBP/USD Take advantage of the selling pressure surrounding the US dollar and extend its recovery above 1.3100.
The USD/JPY rose to its highest level in almost two decades above 126.00 on Wednesday, but erased most of its daily gains amid a pullback in US bond yields. The pair remains relatively calm near 125.50 at the start of the European session on Thursday.
The Prayed capitalized on the drop in US yields and hit a monthly high above $1,980 before entering a consolidation phase near $1,970 early Thursday.
The Bitcoin advanced supported by risk flows on Wednesday. BTC/USD is holding on to small daily gains above $41,000. The ethereum gained 3% on Wednesday and started trading in a tight range around $3,100.
Source: Fx Street
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