This is what you need to know to trade today friday january 13:
After suffering heavy losses against its main rivals on Thursday, the US dollar is having a hard time finding demand early on Friday, with the Dollar Index trading flat slightly above 102.00. As investors assess how December US inflation data will shape the Federal Reserve’s rate outlook, the 10-year US Treasury yield remains below 3.5% and futures of US indices are trading slightly lower on the day. The European economic agenda will focus on industrial production and the trade balance for November. In the second half of the day, the University of Michigan Consumer Sentiment for January and the Fed’s Inflation Expectations Index for the third quarter will be released.
The US Bureau of Labor Statistics announced Thursday that the annual Consumer Price Index dipped to 6.5% in December from 7.1% in November. The core CPI, which excludes the volatility of food and energy prices, fell to 5.7% from 6% in the same period. Following the release of these data, the probability of a 25 basis point Fed rate hike exceeded 90%, according to CME Group’s FedWatch tool, up from 75% early on Thursday. In addition, several Fed policy makers were in favor of a 25 basis point rate hike at the next meeting.
During the Asian session on Friday, data from China revealed that the trade surplus increased to 78,000 million dollars, compared to 69,800 million in November. With this data, which exceeded market expectations of a trade surplus of 76.2 billion dollars, the Shanghai Composite Index gained momentum and gained more than 1% on the day.
Following the impressive recovery on Thursday, the EUR/USD it touched its highest level since April at 1.0868 early on Friday, before pulling back below 1.0850.
The GBP/USD gained over 50 points on Thursday but appears to have entered a consolidation phase around 1.2200 early Friday. The UK Office for National Statistics reported that Gross Domestic Product (GDP) grew by 0.1% in November, following growth of 0.5% in October. Although this data exceeded market expectations, which had expected a contraction of 0.2%, it did not help the British pound to recover its bullish momentum.
The USD/JPY fell sharply on Thursday and continued lower during Asian trading hours on Friday. The pair trades around 128.70, with a fall of 0.4%.
Fueled by falling US Treasury yields, the price of Gold topped $1,900 for the first time in almost 8 months. Early in the European morning, the pair XAU/USD it moves sideways slightly above $1,890.
Bitcoin took advantage of the improving markets and broke above $19,000 on Thursday, gaining more than 5% daily. BTC/USD remains in a consolidation phase around $18,800 early Friday. ethereum extended its winning streak to a fifth straight day on Thursday and rallied above $1,400 before staging a technical correction on Friday.
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.
