Here’s what you need to know to trade today Wednesday September 13:
Traders prefer to stay on the sidelines as caution prevails awaiting inflation data from the US Consumer Price Index (CPI). The release of this first level data is likely to influence the US Federal Reserve’s (Fed) interest rate outlook and set the tone for markets ahead of the Fed’s monetary policy announcement next week.
The rise in oil prices, combined with the revival of hawkish expectations from the European Central Bank (ECB) and the Bank of Japan (BoJ), kept investors uneasy and they refrained from opening new positions. The ECB’s quarterly projections will put inflation above 3% in 2024, Reuters reported on Wednesday, citing sources. Meanwhile, a rumor spread that the Bank of Japan could end its negative interest rate policy in January 2024.
Asian stock markets are trading decent losses, following the negative sentiment on Wall Street the day before. S&P 500 futures are shedding 0.11% on the day at time of writing, reflecting the risk-off scenario.
In the foreign exchange market, the Dollar recovers from the previous decline, benefiting from the state of risk aversion and a new rise in US Treasury bond yields.
Current quote of the US dollar
The following table shows the percentage change of the US dollar (USD) against the main currencies.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.12% | 0.29% | 0.11% | 0.33% | 0.07% | 0.20% | 0.00% | |
| EUR | -0.09% | 0.20% | -0.02% | 0.25% | -0.06% | 0.07% | -0.14% | |
| GBP | -0.28% | -0.15% | -0.17% | 0.05% | -0.23% | -0.09% | -0.29% | |
| CAD | -0.11% | 0.02% | 0.18% | 0.25% | -0.02% | 0.09% | -0.12% | |
| AUD | -0.33% | -0.19% | -0.06% | -0.22% | -0.25% | -0.14% | -0.34% | |
| JPY | -0.08% | 0.06% | 0.20% | 0.04% | 0.24% | 0.13% | -0.08% | |
| NZD | -0.18% | -0.07% | 0.09% | -0.08% | 0.14% | -0.10% | -0.19% | |
| CHF | 0.01% | 0.10% | 0.29% | 0.12% | 0.33% | 0.08% | 0.16% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change in the box will represent EUR (base)/JPY (quote).
He USD/JPY is consolidating the rally above 147.00, having hit a weekly high of 147.45 after the Bank of Japan bought Japanese Government Bonds (JGB) earlier in the Asian session.
He EUR/USD is reversing the rebound as investors turn to profit taking ahead of the US CPI data.
He GBP/USD continues to lose ground and is approaching 1.2400 after the British economy contracted more than expected in July. The Office for National Statistics (ONS) has reported that Gross Domestic Product contracted 0.5% in July compared to Juneworse than forecasts for a contraction of 0.2%.
He AUD/USD is trading under strong selling pressure around 0.6400, while the USD/CAD rises again towards 1.3600, undeterred by the current rise in oil prices. He WTI consolidates near 10-month highs of $88.74.
The price of Gold flirts with three-week lows at $1,907 after breaking down Wednesday’s recent trading range.
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.
