Here is everything about forex you need to know.
Forex traders are staying put as a cautious attitude persists ahead of the all-important Consumer Price Index (CPI) inflation data from the United States. The high-impact data release will almost certainly affect the US Federal Reserve’s (Fed) interest rate outlook and set the tone for markets ahead of the Fed’s policy statements next week.
Rising oil prices, along with a resurgence of hawkish expectations from the European Central Bank (ECB) and the Bank of Japan (BoJ), put investors on edge, causing them to hold off on new bets. According to the ECB’s quarterly predictions, inflation will be higher than 3.0% in 2024, according to Reuters on Wednesday. . Meanwhile, rumors circulated that the Bank of Japan may cease its negative interest rate policy in January 2024.
Asian stock markets traded with modest losses, mirroring the bearish attitude on Wall Street overnight. At press time, the US S&P 500 futures are sliding 0.11% down on the day, reflecting the risk-averse environment.
Across the board, the US Dollar is rebounding from its earlier drop, aided by a risk-off sentiment and an increase in US Treasury bond rates.
Forex market movements against Dollar
USDJPY is maintaining its rebound above 147.00, having reached a weekly high of 147.45 following the Bank of Japan’s purchase of Japanese government bonds (JGB) in early Asia.
The EURUSD is retracing its recent gains as investors take profits ahead of the US CPI report.
The GBPUSD rate isAfter the UK economy deteriorated more than projected in July, the pound fell further, touching 1.2400. The Office for National Statistics (ONS) reported that GDP fell 0.5% in July compared to June, above predictions of a 0.2% decline. GBPUSD is under severe selling pressure at 0.6400, while the USDCAD is regaining ground near 1.3600, unaffected by the continuous rise in oil prices. WTI is settling near a ten-month high of $88.74.
The gold price is flirting with three-week lows of $1,907 after breaking below the previous trading range on Wednesday.
