This is what you need to know to trade today Wednesday December 14:
The US dollar suffered heavy losses against its main rivals on Tuesday, after data released by the US Bureau of Labor Statistics revealed that inflation continued to ease in november. The DXY Dollar Index consolidates losses near 104.00 at the start of the European session on Wednesday, as markets prepare to the Federal Reserve’s monetary policy announcement. US stock index futures are trading slightly higher after Tuesday’s rally and the 10-year US Treasury yield remains below 3.5%. Industrial production data for October will be published on the European economic agenda, which will probably not cause a noticeable reaction in the markets.
See: December Fed Forecast: Will the dollar’s slide continue?
The US Consumer Price Index (CPI) fell to 7.1% annual in November, from 7.7% in October. The annual core CPI fell to 6% in the same period, against the market expectation of 6.1%. The CPI figures, lower than expected, weighed on the dollar, as the discourse of “Fed twist“Nonetheless, the Fed is expected to raise interest rates by 50 basis points after the December policy meeting, and market participants will scan the Summary Economic Forecasts for signs of moderate bias in the outlook. of monetary policy.
See: Fed Preview: How Powell May Strip the Dollar of Any Gains Related to the Forecasts
The EUR/USD gained more than 100 pips on Tuesday and hit its highest level since early June, at 1.0672. At time of writing, the pair is trading sideways, slightly below 1.0650.
The GBP/USD hit multi-month highs at 1.2443 on Tuesday, but pulled back slightly and closed below 1.2400. The pair is trading above 1.2350 early on Wednesday. Data from the UK have shown that the Annual CPI fell to 10.7% in November from 11.1% in October and the core CPI dipped to 6.3% from 6.5%. These figures, however, were largely ignored by market participants.
Following Monday’s bullish action, the USD/JPY fell sharply towards 135.00 on Tuesday. Data from Japan have revealed that Industrial Production contracted 3.2% monthly in October, after the decrease of 2.6% in September. The pair has been relatively quiet during the Asian session and has extended its sideways move above 135.00 during the European morning.
The price of Prayed it rose nearly 2% on Tuesday and hit its highest level in more than five months. XAU/USD consolidates gains around $1,810, with US 10-year yield losses capped for now.
The Bitcoin It took advantage of improving market sentiment on Tuesday and rose to its highest level in five weeks at $18,000. BTC/USD appears to have lost its bullish momentum early Wednesday as it trades slightly below $17,800. The ethereum It rose 3.5% on Tuesday and began to consolidate its gains slightly above $1,300.
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.
