This is what you need to know to trade today Tuesday December 13:
The American dollar started the week on the back foot but reversed course during the American session to end the day with mixed gains against his main rivals. Asian and European indices closed in the red, while Wall Street managed to post gains after a tumultuous week.
Price action, however, was limited amid a tight macroeconomic calendar and before various top eventsbeginning Tuesday with an update on US inflation, followed by monetary policy decisions from the US Federal Reserve, the Bank of England and the European Central Bank.
The New York Federal Reserve published the Consumer Expectations Survey, which showed that inflation expectations have fallen for next year, although they remain high. At the same time, the survey indicated that expected inflation marked a record month-on-month decline in November, while uncertainty about median inflation eased in the short to medium term.
The pair EUR/USD it was around 1.0520 after peaking at 1.0580. The pair GBP/USD trades around 1.2250, unable to extend gains beyond 1.2300 despite generally positive UK data. The trade balance for October registered a deficit of 14.476 million pounds, while the monthly GDP increased by 0.5%, exceeding the forecast drop of 0.1%.
The Australian dollar lost ground against its US rival, and the pair AUD/USD it is currently trading around 0.6740. The pair USD/CAD lost some ground and settled at 1.3636 as the Canadian dollar benefited from strengthening oil prices. Exports from Russia’s Black Sea terminals were suspended on Saturday amid a storm in the region, boosting prices. WTI is currently trading at $73.10 a barrel.
China further relaxed its coronavirus-related restrictionsbut the markets’ reaction to this positive news was little.
The US dollar rose against its safe-haven rivals. The pair USD/JPY It is trading around $137.80, while spot gold is around $1,780.
The CPI Consumer Price Index for November will be published in the United States on Tuesday. Annual inflation is expected to stand at 7.3%, down from the previous month (7.7%), while the core CPI, which excludes food and energy price volatility, would have risen by 6.1 %. On Wednesday, the US Federal Reserve (Fed) will announce its decision on monetary policy, while the European Central Bank (ECB) will do the same on Thursday. Both central banks are expected to raise rates, although the extent of such hikes is uncertain. The Fed could slow the pace of tightening and proceed to a 50 basis point hike, while the ECB could eventually turn hawkish.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
