Australian Employment for March is the key report of the Asian session. China will publish its trade balance data. The Production Price Index will be published on Thursday. The Dollar Index is under pressure and on Wednesday posted the lowest daily close since early February.
Here’s what to know on Thursday, April 13:
The US Consumer Price Index (CPI) rose 0.1% in March, below the 0.3% expected increase, and the annual rate slowed to 5%, the lowest since May 2021. However, the underlying rate rose from 5.5% to 5.6% year-on-year. Despite the persistence of core inflation, the bond market continues to bet on rate cuts at the end of 2023, while still seeing some possibility of another rate hike at the May FOMC meeting (the last one). Falling US yields weigh on the dollar.
The Dollar Index fell to 101.50 and registered the daily minimum since February. The Production Price Index will be published on Thursday. The weekly applications for unemployment benefits will also be reported.
EUR/USD jumped to the 1.1000 area but was unable to break above, while EUR/GBP rose above 0.8800. Expectations of further rate hikes by the European Central Bank (ECB) continue to offer support to the common currency.
GBP/USD gained ground for the second day in a row and is once again approaching the 1.2500 area, with bullish prospects. UK GDP data will be released on Thursday, as well as Industrial Production and the Trade Balance.
USD/JPY ended a positive streak and bottomed at 132.70. It bounced during the American session above 133.00, but the short-term outlook remains bearish.
The AUD/USD pair reached a high of 0.6723 and then returned below 0.6700. Australia will publish employment data on Thursday; the market consensus points to an increase of 20,000 jobs during the month of March.
The Bank of Canada, as expected, kept interest rates unchanged at 4.5%, without offering any significant changes to its forward guidance. BOC Governor Macklem stated that they do not foresee a major contraction. On Thursday he will speak again at the spring meetings of the International Monetary Fund. USD/CAD fell for the second day in a row, settling below 1.3450, as it continues to approach April lows.
The NZD/USD pair rallied modestly and recaptured the 0.6200 level as the Kiwi lags again. AUD/NZD rose above 1.0750, to weekly highs.
the bitcoin it broke above $30,500 after the US CPI data, but then fell back to $29,800. Gold price peaked at $2,030 and then pulled back as low as $2,000 to end a volatile session around $2,015. Lastly, silver broke above $25.00.
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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.
