This is what you need to know to trade today thursday july 13:
The US dollar suffered heavy losses against its main rivals on Wednesday, as investors reacted to weak inflation data for June. The US Dollar Index (DXY) lost more than 1% on the day and fell to its lowest level in 15 months. As of early Thursday, the DXY remains under modest bearish pressure and US stock index futures are trading in positive territory. Industrial production data for May will be included in the European economic calendar ahead of the weekly US Producer Price Index (PPI) data later in the day.
The US Consumer Price Index (CPI) rose 3% annually in June, after rising 4% in May. On a monthly basis, the CPI and Core CPI increased 0.2%. Although Federal Reserve (Fed) policymakers Neel Kashkari and Thomas Barkin pointed out that inflation was still too high, these comments did not help the USD find demand. According to the CME Group FedWatch Tool, the probability that the Federal Reserve (Fed) will raise its policy rate by 25 basis points (bps) again in December after a rate hike in July fell below 20% from 33 % prior to CPI data.
During Asian business hours, data from China revealed that the trade surplus widened to $70.62 billion from $65.81 billion in May. On an annual basis, exports and imports decreased by 12.4% and 6.8% in that period, respectively.
He EUR/USD gains bullish momentum and breaks above 1.1100. As of this writing, the pair is trading at its highest level since March 2022 around 1.1150.
He GBP/USD extended its rally and climbed above 1.3000 for the first time in over 15 months on Thursday. Earlier in the day, the UK’s Office for National Statistics reported that industrial production fell 0.6% on a month in May, while real Gross Domestic Product contracted 0.1%.
The Bank of Canada (BoC) raised its policy rate by 25 basis points to 5% as expected after the July policy meeting. The Canadian economy has been stronger than expected, with more momentum in demand, the BoC noted in its policy statement. “The Governing Council remains concerned that progress towards the 2% inflation target could stall, jeopardizing a return to price stability.” He USD/CAD closed deep in negative territory on Wednesday and continues to drop towards 1.3150.
He USD/JPY it lost almost 200 pips on Wednesday and fell to its weakest level in over three months near 138.00 in the Asian session on Thursday. The pair remains in a consolidation phase around 138.50 in the European morning.
He gold price rose and exceeded $1,960. In addition to broad-based USD weakness, the 3% drop seen in the 10-year US Treasury yield after the US inflation data provided a boost to XAU/USD.
He Bitcoin did not benefit from the improvement in risk sentiment and closed in negative territory on Wednesday. At the time of writing, BTC/USD is trading sideways below $30,500. He ethereum it was unable to make a decisive move in either direction and closed virtually unchanged on Wednesday. ETH/USD is relatively calm around $1,900 in the European session.
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.
