This is what you need to know to trade today Wednesday July 13:
Following a downward correction in the first half on Tuesday, the dollar regained its strength amid sour market sentiment during the American session, with the DXY dollar index closing the day flat. The DXY index remains relatively calm above 108.00 early on Wednesday, as attention turns to data from the consumer price index (CPI). The Bank of Canada (BoC) to announce its decision on interest rates and will publish the monetary policy statement throughout the day. Finally, the Federal Reserve Beige Book will also be taken into account for a new boost.
See: Previous US Inflation: Signs of an Inflation Peak? Three scenarios for the core CPI and the dollar
See: June CPI preview in the US: The rise in the dollar could lose strength due to weak inflation data
Wall Street’s main indices moved into positive territory after a memo released by the White House showed the US economy is expected to transition to lower inflation and steady growth on the strength of the labor market. However, the positive impact of these comments on market sentiment was short-lived, with the SP500 index falling almost 1% on Tuesday. As of early Wednesday, US stock index futures are trading flat.
In the meantime, the Reserve Bank of New Zealand (RBNZ) raised its interest rate by 50 basis points to 2.5%, as expected. In the statement, the central bank said the weakness of the New Zealand dollar was weighing on import prices. The NZD/USD It barely reacted to the monetary policy announcement and is now trading with small daily losses near 0.6130.
The USD/CAD closed the previous two days in negative territory and appears to have entered a consolidation phase above 1.3000 on Wednesday. The Bank of Canada is expected to raise its policy rate by 75 basis pointsup to 2.25% from 1.5%.
The pair EUR/USD failed to gain recovery momentum and closed the day largely unchanged near 1.0050 on Tuesday. The pair remains relatively calm near that level in the European morning. Eurostat will release industrial production data for May later in the session. Meanwhile, the data from Germany showed that the annual CPI stood at 7.6% in Juneequaling the previous estimate.
The GBP/USD gained traction in the early European morning and climbed above 1.1900. The UK Office for National Statistics reported that gross domestic product GDP grew 0.5% monthly in May, exceeding the market expectation of 0%. Other data showed that industrial production and manufacturing expanded 1.4% and 0.9% on a monthly basis.
The USD/JPY it closed in negative territory on Tuesday, but started to rise early on Wednesday. The pair is trading above 137.00 in European morning.
The Gold hit its lowest level since September, near $1,720, before recovering slightly. Following Tuesday’s decline, the 10-year US Treasury yield is trading sideways below 3%, capping XAU/USD action for now.
The Bitcoin fell for the third day in a row on Tuesday and closed below $20,000. BTC/USD is trading sideways near $19,500 so far on Wednesday. The ethereum It lost more than 5% on Tuesday and is moving just short of the critical $1,000 zone.
Source: Fx Street
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