This is what you need to know to trade today Wednesday June 8:
The dollar struggled to find demand amid improving market sentiment on Tuesday, but 10-year US Treasury bond yield rebounded 3% early Wednesday, helping the USD remain relatively resilient against its rivals. Eurostat will publish the figures for the gross domestic product GDP in the first quarter of the euro zone. An auction of 10-year US Treasury bonds will be held later, and the US Census Bureau will release data on wholesale inventories. Pending monetary policy announcements from the European Central Bank (ECB) on Thursday and US inflation data on Friday, business activity could remain subdued.
In the absence of shocking data releases, Wall Street’s major indices posted strong gains on Tuesday. However, US stock index futures are down between 0.3% and 0.4% in early hours on Wednesday, pointing to a cautious feeling on the market today. The dollar index posts modest gains near 102.50.
The The Reserve Bank of India announced on Wednesday that it was raising its benchmark interest rate by 50 basis points., down to 4.9%, while leaving the reserve interest rate unchanged at 3.35%. The USD/INR pair returned to 77.70 after initially reaching the 77.95 level.
A day before the release of China’s trade balance data, the Chinese Vice Minister of Commerce said in a statement that importers and exporters remain under pressure due to logistical problems and rising material prices.
On Tuesday, the pair EUR/USD fell to a five-day low at 1.0652, but managed to recoup its losses. The pair is trading slightly below 1.0700 in the European session.
The GBP/USD ended up closing in positive territory supported by risk flows on Tuesday, after falling to a multi-week low below 1.2500. The pair is now consolidating its gains below 1.2600.
The USD/JPY trades at its highest level in 20 years above 133.00. Data from Japan has shown that GDP contracted at an annualized rate of 0.5% in the first quarter. Bank of Japan Governor Haruhiko Kuroda said on Wednesday that he was withdrawing his comment about households accepting price hikes. “The rapid weakening of the yen in a short period of time, as seen recently, is not desirableKuroda added, but these comments did not help the yen find demand.
The Prayed took advantage of the decline in US Treasury yields on Tuesday and snapped a two-day losing streak. XAU/USD appears to have stabilized near $1,850 in the European session.
The Bitcoin still down after posting small daily losses on Tuesday and is now down 2% on the day at $30,500. The ethereum remains on the defensive and is trading near $1,800.
Source: Fx Street
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