This is what you need to know to trade today Thursday June 8:
Market action remains choppy in the second half of the week with the major currency pairs continuing to fluctuate within their weekly ranges. Eurostat will publish the final review of the growth of the Gross Domestic Product (GDP) for the first quarter and initial weekly jobless claims will be on Thursday’s US economic calendar.
After the Reserve Bank of Australia (RBA), the Bank of Canada (BoC) this week became the second major central bank to surprise markets with a rate hike. The BoC raised its official interest rate by 25 basis points, up to 4.75%, after having kept it unchanged in the two previous meetings. In its monetary policy statement, the BoC said concerns have grown over the possibility of CPI inflation running well above the 2% target. Following this news, the pair USD/CAD it fell to its lowest level in a month near 1.3320 before stabilizing near 1.3350 early Thursday.
The unexpected rise in the BoC triggered a rally in bond yields around the world. The 10-year US Treasury yield rose nearly 4% to around 3.8%. Meanwhile, the probability of a new Fed rate hike next week, according to CME Group’s FedWatch tool, rose above 30% from 20% earlier in the week. As of early Thursday, US stock index futures are trading flat and the DXY Dollar Index is calm near 104.00.
He EUR/USD continued its sideways trend and closed virtually unchanged on Wednesday. The pair is hovering around 1.0700 on Thursday’s European morning.
He GBP/USD it posted small gains on Wednesday and is now trading a few pips above 1.2450.
He USD/JPY closed in positive territory on Wednesday, but lost its bullish momentum after finding resistance near 140.00. Data from Japan have shown that the Real Gross Domestic Product grew at an annualized rate of 2.7% in the first quarterexceeding the initial estimate of 1.6%.
Pressured by rising bond yields, the price of gold turned down and broke below $1,950 on Wednesday. As of early Thursday, XAU/USD consolidates its losses but remains below $1,950.
He Bitcoin it failed to consolidate Tuesday’s gains and lost more than 3% on Wednesday. In the European session, BTC/USD is trading in a tight range near $26,500. He ethereum reversed direction and fell back towards $1,800 after finding resistance at $1,900 mid-week.
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.
