This is what you need to know to operate today Thursday, June 12:
The feeling of risk remains negative on Thursday morning while investors take into account the latest commercial holders and keep calm before data from the data of the Production Price Index (IPP) of May of the US Labor Statistics Office (BLS) and another 10 -year Treasury bond auction.
The seller interest around the US dollar (USD) remains unchanged, with the dollar reaching the lowest level in two months in front of its monetary rivals about 98.25.
Despite the decrease in commercial tensions between the US and China, persistent uncertainties on the tariffs of US President Donald Trump against the main commercial partners continue to worry the markets.
Trump said Wednesday night that he was open to extend the term of July 8 to complete trade negotiations with countries.
In addition, the increase in geopolitical tensions in the Middle East contributes to the bleak mood.
The main reporter of the White House of CBS News, Jennifer Jacobs, informed that US officials have been told that Israel is completely ready to launch an operation in Iran.
“The US anticipates that Iran could retal to certain US sites in Iraq,” Jacobs added.
This occurs while Trump’s envoy for the Middle East, Steve Witkoff, still plans to meet Iran for a sixth round of conversations about the country’s nuclear program on Sunday.
Meanwhile, the USD also feels the impact of the softest inflation data in the US for May. The US consumer price (CPI (CPI) increased 0.1% in the month, placing the annual inflation rate by 2.4%. Both data undermined the expectations of 0.2% and 2.5% respectively.
The USAEst CPI data of what was expected solidified the bets for an interest rate cut of 25 basic points (PB) by the Federal Reserve (Fed) in September.
The CME Group Fedwatch tool now shows that the markets are valuing approximately 62% probability of a 25 PB cut compared to 52% seen before the data publication.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the weakest currency against Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.23% | -0.11% | -0.52% | -0.15% | 0.03% | -0.09% | -0.41% | |
| EUR | 0.23% | 0.12% | -0.33% | 0.07% | 0.24% | 0.15% | -0.15% | |
| GBP | 0.11% | -0.12% | -0.45% | -0.05% | 0.11% | 0.02% | -0.30% | |
| JPY | 0.52% | 0.33% | 0.45% | 0.36% | 0.54% | 0.38% | 0.12% | |
| CAD | 0.15% | -0.07% | 0.05% | -0.36% | 0.19% | 0.05% | -0.25% | |
| Aud | -0.03% | -0.24% | -0.11% | -0.54% | -0.19% | -0.10% | -0.41% | |
| NZD | 0.09% | -0.15% | -0.02% | -0.38% | -0.05% | 0.10% | -0.31% | |
| CHF | 0.41% | 0.15% | 0.30% | -0.12% | 0.25% | 0.41% | 0.31% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
The EUR/USD remains close to seven -week maximums above 1,1500 in the European morning on Thursday, building on the profit of 0.50% on Wednesday.
The GBP/USD goes back around 1,3550 after facing rejection about 1,3600. The sterling pound was beaten by a greater contraction than expected in the United Kingdom economy in April.
The data showed on Thursday that the Gross Domestic Product (GDP) of the United Kingdom fell 0.3% in April, after a growth of 0.2% in March and against a fall of 0.1% expected. Monthly industrial production and manufacturing production data were also below market expectations in the same period.
The USD/JPY maintains losses about 144.00, undermined by the growing demand for refuge for the Japanese yen (JPY). The torque also continues for the persistent weakness surrounding the US dollar.
The price of gold extends its optimistic impulse for the second consecutive day, reaching new weekly maximums about $ 3,380.
The WTI decreases almost 1% from the maximum of 10 weeks of $ 67.82, reached in response to the headlines about Iran and Israel.
FAQS risk feeling
In the world of financial jargon, the two terms “appetite for risk (Risk-on)” and “risk aversion (risk-off)” refers to the level of risk that investors are willing to support during the reference period. In a “Risk-on” market, investors are optimistic about the future and are more willing to buy risk assets. In a “Risk-Off” market, investors begin to “go to the safe” because they are concerned about the future and, therefore, buy less risky assets that are more certain of providing profitability, even if it is relatively modest.
Normally, during periods of “appetite for risk”, stock markets rise, and most raw materials – except gold – are also revalued, since they benefit from positive growth prospects. The currencies of countries that are large exporters of raw materials are strengthened due to the increase in demand, and cryptocurrencies rise. In a market of “risk aversion”, the bonds go up -especially the main bonds of the state -, the gold shines and the refuge currencies such as the Japanese yen, the Swiss Franco and the US dollar benefit.
The Australian dollar (Aud), the Canadian dollar (CAD), the New Zealand dollar (NZD) and the minor currencies, such as the ruble (Rub) and the South African Rand (Tsar), tend to rise in the markets in which there is “appetite for risk.” This is because the economies of these currencies depend largely on exports of raw materials for their growth, and these tend to rise in price during periods of “appetite for risk.” This is because investors foresee a greater demand for raw materials in the future due to the increase in economic activity.
The main currencies that tend to rise during the periods of “risk aversion” are the US dollar (USD), the Japanese yen (JPY) and the Swiss Franco (CHF). The dollar, because it is the world reserve currency and because in times of crisis investors buy American public debt, which is considered safe because it is unlikely that the world’s largest economy between in suspension of payments. The Yen, for the increase in the demand for Japanese state bonds, since a great proportion is in the hands of national investors who probably do not get rid of them, not even in a crisis. The Swiss Franco, because the strict Swiss bank legislation offers investors greater protection of capital.
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.
