This is what you need to know to trade today Wednesday, November 10:
Major currency pairs continue to fluctuate in relatively tight ranges after Tuesday’s macroeconomic data releases and central bank speakers offered no surprises. As the focus shifts to the US inflation report and weekly jobless claims figures, the cautious market mood allows the greenback to remain resilient against its rivals. Investors will also keep an eye on the progress of the negotiations on the Northern Ireland Brexit protocol.
The major Wall Street indices closed in negative territory on Tuesday with a lagged correction following the record rally that was taking place. Currently, US stock index futures are down around 0.3%, the Shanghai Composite is down almost 1% and the Nikkei 225 is down 0.6%. Meanwhile, the benchmark 10-year US Treasury yield has risen more than 1%, but remains below 1.5%.
The EUR/USD it moved higher early in the US session on Tuesday, but failed to stay above 1.1600. Klass Knot, Policy Officer at the European Central Bank (ECB), reiterated that the conditions for a rate hike in 2022 were highly unlikely to be met. German CPI data showed a 4.5% annual rise in October, as as expected, its highest level since 1993.
EUR / USD: How to Trade US Inflation – Five Scenarios and Levels to Consider
GBP/USD it extended its rebound on Tuesday, but reversed its direction after advancing past 1.3600. The pair is stable on Wednesday, but growing concerns over the UK and the activation of Article 16 could start to weigh on the British pound.
USD/JPY it closed the last four trading days in the red and appears to have entered a consolidation phase around 113.00. Although the risk-averse market environment is helping the safe-haven yen find demand, rising US bond yields are limiting the USD / JPY decline.
AUD/USD it extended its slide after breaking below and is trading at its lowest level in nearly a month around 0.7350 on Wednesday. In the early trading hours of the Asian session on Thursday, Australia’s October employment report could offer further impetus.
The oro it rose to its strongest level in more than two months at $ 1,833 on Tuesday before entering a consolidation phase below $ 1,830 on Wednesday. XAU / USD continues to react to fluctuations in US bond yields.
US October CPI Preview: Inflation Data Unlikely to Discourage Gold Bulls
cryptocurrencies: Bitcoin it fell back modestly after hitting a new all-time high above $ 68,000. Ethereum it trades with modest losses around $ 4,700 early Wednesday morning. Ripple It is losing more than 2% after climbing to a new two-month high near $ 1.3 after a 5% increase on Monday.