Forex Today: A lot of noise for a little nut
|What you need to know on Friday, June 11:
Majors showed no reaction to first-tier events, and continue to trade within familiar levels.
The US reported May inflation figures, which were upwardly revised, with the annual CPI hitting 5%, accelerating at its fastest pace since 2008. The core reading resulted at 3.8%, also suffering a sharp upward revision. However, the numbers failed to spur concerns. Stocks edged higher while US Treasury yields returned to weekly lows after a short-lived spike.
Also, the European Central Bank announced its monetary policy decision. As widely anticipated, policymakers left rates and easing unchanged and reiterated that they would continue supporting the economy through their different programs. President Christine Lagarde offered a mixed speech, as she said price pressures remain subdued and that it is too early to discuss tapering. At the same time, the ECB upwardly revised the growth forecast to 4.6% for this year and to 4.7% for the next one.
Brexit and UK coronavirus-related headlines were also hot. Regarding the first, talks between UK Brexit Minister David Frost and European Commission vice-president Maros Sefcovic to resolve differences over the Brexit deal broke up without a breakthrough on Wednesday. At the same time, speculation mounts that the kingdom will have to delay its planned reopening on June 21 amid the continued increase of new coronavirus cases. The country reported roughly 7,400 new cases, although the number of people in ICU is stable at 157.
The EUR/USD pair trades around 1.2170, still unable to advance beyond the 1.2200 figure. The GBP/USD pair recovered some 100 pips from a daily low of 1.4071.
Commodity-linked currencies advanced against the greenback amid the better tone of oil and gold. Crude oil prices plunged in the American afternoon amid market talks indicating that the US lifted sanction Iranian individuals, a step toward a nuclear deal. Nevertheless, prices recovered ahead of the close with WTI ending the day above $ 70 a barrel. Gold trades at daily highs in the 1,896 price zone, maintaining a positive stance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.