This is what you need to know to trade today friday august 12:
The risk rally that was fueled by weaker-than-expected US inflation data in the middle of the week lost its steam and market action turned choppy heading into the weekend. The DXY dollar index trades sideways in a tight range above 105.00, the 10-year US Treasury yield remains above 2.8% and US stock index futures Post small daily gains after mixed results on Wall Street on Thursday. The data from Industrial production June will be the protagonists of the European economic agenda. Later, investors will pay attention to the preliminary survey from the University of Michigan on consumer sentiment in August. The long-term inflation expectations component of the survey could trigger a market reaction during the American session.
Although US data showed on Thursday that producer inflation rose at a softer pace than expected in July, the dollar managed to hold its ground against its rivals amid a cautious sentiment in the markets. For her part, the president of the San Francisco Fed, Mary Daly, told Bloomberg that she is open-minded to the possibility of a 75 basis point rate hike in September.
The EUR/USD posted small daily gains on Thursday and appears to have entered a consolidation slightly above 1.0300 on Friday.
The GBP/USD continues to fluctuate in a tight channel near 1.2200 in early European morning as investors weigh the latest data. The UK Office for National Statistics reported on Friday that gross domestic product GDP contracted 0.1% in quarterly terms in the second trimester. Also, industrial and manufacturing production fell 0.9% and 1.6%respectively, in monthly terms in July.
The Prayed closed flat on Thursday and remains down near $1,790 early Friday as US Treasury yields were flat during the European session.
The pair USD/JPY it has bounced back after dipping below 132.00 on Thursday, but has struggled to gain momentum. The pair is holding on to modest daily gains as it tries to stretch towards 133.50 on Friday.
Rising crude oil prices boost the CAD, sensitive to commodity prices, and the USD/CAD continues to drop towards 1.2700 on Friday. the barrel of West Texas Intermediate It’s up more than 6% this week.
The Bitcoin hit its highest level since mid-June at around $25,000 but erased all of its daily gains to close at $24,000 on Thursday. BTC/USD remains calm near that level during the European morning. The Ethereum it lost its upside momentum before then $2,000 and fell back below $1,900. Nonetheless, ETH/USD is up more than 10% this week and remains on track for its sixth consecutive weekly gain.
Source: Fx Street
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