This is what you need to know to operate today Wednesday April 10:
He US dollar (USD) remains stable as markets eagerly await March Consumer Price Index (CPI) data. Later in the American session, the Federal Reserve (Fed) will publish the minutes of the March monetary policy meeting. Additionally, the Bank of Canada (BoC) will announce monetary policy decisions before its governor, Tiff Macklem, speaks about the policy outlook and answers questions from the press.
Major currency pairs fluctuated in familiar ranges on Tuesday as investors were reluctant to take large positions ahead of US inflation data. On an annual basis, the CPI is expected to rise 3.4% in March, while the core CPI is expected to rise 3.7%. Financial markets remain subdued early on Wednesday, with the USD Index moving sideways slightly above 104.00. Meanwhile, US stock index futures are trading slightly higher after Wednesday's choppy trading and the 10-year US Treasury bond yield remains below 4.4% after losing more than 1% on the day. former.
US CPI Forecast: Inflation Expected to Provide Mixed Signals in March, Complicating Fed's Policy Pivot
economic indicator
Consumer Price Index (annual)
Inflationary or deflationary trends are measured by periodically adding the prices of a basket of representative goods and services and presenting the data as the Consumer Price Index (CPI). CPI data is collected monthly and published by the U.S. Bureau of Labor Statistics. The CPI is a key indicator for measuring inflation and changes in purchasing trends. Generally speaking, a high reading is considered bullish for the US Dollar (USD), while a low reading is considered bearish.
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Last post: Mar 12, 2024 12:30
Periodicity: Monthly
Current: 3.2
Consensus: 3.1%
Former: 3 ,1%
Fountain: US Bureau of Labor Statistics
The US Federal Reserve has the dual mandate of maintaining price stability and maximum employment. According to this mandate, inflation should be around 2% annually and has become the weakest pillar of the central bank's directive since the world suffered a pandemic, which continues to this day. Price pressures continue to mount amid supply chain issues and bottlenecks, with the Consumer Price Index (CPI) at multi-decade highs. The Fed has already taken steps to contain inflation and is expected to maintain an aggressive stance for the foreseeable future.
The BoC is expected to keep the official interest rate at 5% after the April meeting. He USD/CAD struggled to find direction on Tuesday and closed the day virtually unchanged, slightly below 1.3600. The pair fell towards 1.3550 in the early hours of the European session.
After rising towards 1.0900, the EUR/USD lost traction and fell towards the 1.0850 area late Tuesday. The pair remains relatively calm near this level as of mid-week.
He GBP/USD It erased some of its daily losses after surpassing 1.2700 on Tuesday, but ended up posting small gains on the day. The pair remains firm in the European morning and is trading comfortably above 1.2650.
Price of the US Dollar this week
Below is the percentage change of the US Dollar (USD) against the main currencies quoted this week. The US Dollar was the strongest currency against the Japanese Yen.
USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
USD | -0.17% | -0.41% | -0.28% | -0.80% | 0.07% | -1.09% | 0.06% | |
EUR | 0.17% | -0.24% | -0.11% | -0.62% | 0.24% | -0.90% | 0.23% | |
GBP | 0.41% | 0.24% | 0.13% | -0.38% | 0.48% | -0.66% | 0.48% | |
CAD | 0.29% | 0.11% | -0.12% | -0.50% | 0.35% | -0.78% | 0.35% | |
AUD | 0.80% | 0.62% | 0.39% | 0.50% | 0.86% | -0.27% | 0.85% | |
JPY | -0.07% | -0.25% | -0.47% | -0.35% | -0.87% | -1.13% | 0.01% | |
NZD | 1.06% | 0.88% | 0.65% | 0.78% | 0.27% | 1.13% | 1.11% | |
CHF | -0.07% | -0.25% | -0.48% | -0.35% | -0.87% | 0.00% | -1.16% |
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 that appears in the box will represent EUR (base)/JPY (quote).
Earlier, the Reserve Bank of New Zealand (RBNZ) announced that it was maintaining the interest rate at 5.5%, as anticipated: “A restrictive monetary policy remains necessary to continue reducing pressures on the capacity and inflation,” the RBNZ said in its monetary policy statement. After closing in green on Tuesday, the pair NZD/USD continued to rise in the Asian session and reached its highest level since March 21 above 0.6070.
Reserve Bank of New Zealand (RBNZ) keeps interest rates unchanged at 5.5% for sixth consecutive meeting
He USD/JPY continues to move up and down in a very tight range, slightly below 152.00. Bank of Japan Governor Kazuo Ueda stated earlier in the day that he expects accommodative financial conditions to remain for the time being, given the current outlook for economic activity and prices.
He Gold It again marked a new all-time high above $2,360 on Tuesday. XAU/USD remains relatively calm early on Wednesday and fluctuates in a narrow band above $2,350.
Inflation FAQ
What is Inflation?
Inflation measures the rise in prices of a representative basket of goods and services. General inflation is usually expressed as a month-on-month and year-on-year percentage change. Core inflation excludes more volatile items, such as food and fuel, which can fluctuate due to geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the target level of central banks, which are mandated to keep inflation at a manageable level, typically around 2%.
What is the Consumer Price Index (CPI)?
The Consumer Price Index (CPI) measures the variation in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage of inter-monthly and inter-annual variation. Core CPI is the target of central banks as it excludes food and fuel volatility. When the underlying CPI exceeds 2%, interest rates usually rise, and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually translates into a stronger currency. The opposite occurs when inflation falls.
What is the impact of inflation on currency exchange?
Although it may seem counterintuitive, high inflation in a country drives up the value of its currency and vice versa in the case of lower inflation. This is because the central bank will typically raise interest rates to combat higher inflation, attracting more global capital inflows from investors looking for a lucrative place to park their money.
How does inflation influence the price of Gold?
Gold was once the go-to asset for investors during times of high inflation because it preserved its value, and while investors often continue to purchase gold for its safe haven properties during times of extreme market turmoil, this is not the case. most of the time. This is because when inflation is high, central banks raise interest rates to combat it.
Higher interest rates are negative for Gold because they increase the opportunity cost of holding Gold versus an interest-bearing asset or placing money in a cash deposit account. On the contrary, lower inflation tends to be positive for Gold, as it reduces interest rates, making the shiny metal a more viable investment alternative.
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.