This is what you need to know to trade today Wednesday January 11:
Following the volatility earlier in the week, financial markets remained choppy on Tuesday. Absent high-profile data releases and fundamentals, the major currency pairs are relatively quiet into early Wednesday and the dollar index consolidates its weekly losses slightly above 103.00. Pending US CPI data on Thursday, the US 10-year Treasury auction could gain further momentum during US trading hours.
Reflecting market indecision, US stock index futures are trading unchanged and the 10-year Treasury yield is holding steady at around 3.6%. Meanwhile, Euro Stoxx Futures are slightly higher and the Shanghai Composite Index closes the day broadly unchanged.
Speaking at the Riksbank International Symposium on Central Bank Independence, FOMC Chairman Jerome Powell refrained from commenting on monetary policy or the rate outlook on Tuesday. However, Wall Street’s main indices managed to end in positive territory and did not allow the US dollar to recoup Monday’s losses.
The pair EUR/USD It rose slightly and is now trading around 1.0750. On Tuesday, Isabel Schnabel, member of the Governing Council of the European Central Bank (ECB), stated that a restrictive monetary policy would benefit society in the medium and long term, by restoring price stability. In a slightly dovish tone, Mario Centeno, a member of the ECB’s Governing Council, noted that the current interest rate process was drawing to a close.
Data from Australia showed on Tuesday that retail sales rose 1.4% m/m in November, after contracting 0.2% in October. This figure exceeded market expectations, which expected an increase of 0.6%. In addition, the Consumer Price Index (CPI) rose 7.3% annually in November, compared to 6.9% in October. The pair AUD/USD gained ground following the release of this data and is now trading in positive territory above 0.6900.
A quarterly Bank of Japan survey showed on Wednesday that the percentage of Japanese households expecting prices to rise a year from now stood at 85.0% in December, up from 85.7% in September. The pair USD/JPY did not react to this data and is trading flat around 132.30.
The GBP/USD made a technical correction and posted small losses on Tuesday. The pair is holding firm early Wednesday and trading near 1.2170.
Rising US Treasury yields capped XAU/USD gains on Tuesday. However, with the 10-year US Treasury yield struggling to consolidate its recent rise, the price of gold regained its traction and is trading at its highest level in almost eight months above $1,880.
The Bitcoin It benefited from the improving risk climate and hit a fresh multi-week high near $1.7500 on Tuesday, before entering a consolidation phase around $17,400 on Wednesday. ethereum It rose for the third day in a row on Tuesday and is trading unchanged at $1,330.
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.
