This is what you need to know to trade today friday november 11:
The optimistic feeling of the markets remains intact on the last day of the week, while investors celebrate soft US inflation data and news that China is easing Covid-related restrictions. The dollar index continues to slide below 108.00 after losing more than 2% on Thursday and global stock indices are higher. Bond markets in the US will remain closed for the Veterans Day holiday, but Wall Street will trade as usual. The survey of Consumer Sentiment (Preliminary) from University of Michigan for the month of November, and investors will be watching for central bank interventions ahead of the weekend.
The US Bureau of Labor Statistics announced Thursday that inflation in the country, as measured by the Consumer Price Index (CPI), fell to 7.7% annual in October, from 8.2% in September. The core CPI, which excludes volatile food and energy prices, fell to 6.3% from 6.6% in the same period. With both data below market expectations, the probability of a 50 basis point Fed rate hike in December, according to the CME Group’s FedWatch tool, rose above 80%, from 50% at the beginning of week. For its part, major US stock indices posted impressive gainsthe dollar suffered heavy losses and the benchmark 10-year US Treasury bond yield fell to 3.8%, losing nearly 7% on the day.
See: US Inflation Analysis: The Rise Is Tough When It’s Fogy, The Dollar Is About To Drop (Until Next CPI)
Earlier in the day, China’s National Health Commission announced that it had decided reduce the quarantine times required of travelers and people who have had a contact closely with the identified cases of Covid. The Shanghai Composite Index was up almost 2% on the day and Hong Kong’s Hang Seng Index was up 6.8%. Reflecting risk appetite in the markets, US stock index futures are up 0.5%-0.7%.
The UK Office for National Statistics (ONS) reported on Friday that Gross Domestic Product (GDP) grew at an annualized rate of 2.4% in the third quarter, compared to the market expectation of 2.1%. Other data from the UK showed that Industrial Production grew by 0.2% monthly in September. GBPUSD largely ignored the latest data and is now trading sideways slightly above 1.1700.
The EURUSD posted impressive gains on Thursday and continued to rise during Asian trading hours on Friday. The pair is now trading at its highest level since mid-Augustslightly above 1.0200.
The USDJPY lost over 400 pips on Thursday and touched its lowest level in seven weeks, near 140.00, before staging a rebound on Friday. At time of writing, USDJPY is up 0.5% on the day at 141.65.
Driven by falling US Treasury yields, the price of the Prayed rose almost 3% on Thursday and posted one of its biggest daily gains of the year. XAUSD is currently trading above $1,750 and is up almost 5% since the start of the week.
The Bitcoin gained 10% on Thursday after losing more than 20% in the first half of the week. BTCUSD, however, appears to struggle to pick up any bullish momentum early on Friday as markets remain vigilant on developments surrounding the FTX drama. At the time of writing, Bitcoin is down nearly 2% on the day at $17,250. The ethereum It is trading in negative territory around $1,250 early Friday after a 17% rally on Thursday.
Source: Fx Street
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