During the Asian session, China will release essential data, including inflation and trade figures for September. Later in the day, Switzerland will report wholesale inflation, and Eurostat, Industrial Producer data. In the US, the University of Michigan Consumer Sentiment survey is due.
Here is what you need to know on Friday, October 13:
The US Dollar rose sharply, erasing days of losses but remaining below recent cycle highs. The US Dollar index climbed 0.80% to 106.55, boosted by robust US economic data and higher Treasury yields.
The US annual Consumer Price Index (CPI) rate stood at 3.7% in September, above the market consensus of 3.6%. Additionally, the Producer Price Index (PPI) surpassed expectations. Initial Jobless Claims rose to 209,000, slightly below the market consensus of 210,000. The combination of robust US data and persistent inflation above the target reinforced expectations of high interest rates for an extended period.
TDS analysts on US inflation:
In our view, today's CPI report should not make a meaningful difference for the Fed ahead of the November FOMC meeting. Fed officials are viewing the recent run up in yields as doing part of the tightening job that a majority of the Committee intended with an additional rate increase, at least in the near term. We expect the Fed to remain patient as they continue to evaluate the totality of the data.
US Treasury yields also increased, with the 10-year yield rising from 4.57% to 4.73% and the 2-year yield from 4.98% to 5.07%.
The University of Michigan Consumer Sentiment survey is due on Friday, providing a preliminary reading for October, which will be closely watched. On Friday, China will release Consumer Price Index (CPI) and Producer Price Index (PPI) data for September, as well as trade figures. These numbers have the potential to impact markets, especially antipodean currencies.
EUR/USD lost around a hundred pips, falling to 1.0525. The Euro experienced a sharp reversal from around 1.0630 due to a stronger US Dollar. Eurostat will release Industrial Production data for August. European Central Bank (ECB) President Lagarde will participate in a panel at the annual International Monetary Fund and World Bank meeting. Spain and France will publish the final readings of their respective Consumer Price Index (CPI).
USD/CHF rebounded from weekly lows at 0.8987 to the 200-day Simple Moving Average (SMA) at 0.9090. Switzerland will release Producer and Import Price Index data for September.
GBP/USD ended a positive six-day streak with a 140-pip decline, dropping below 1.2200 and reinforcing the bearish trend. The negative risk sentiment also weighed on the Pound.
NZD/USD fell for the second consecutive day, not only breaking below 0.6000 but also dipping below the 20-day SMA to 0.5925. Early on Friday, New Zealand will release Electronic Card Retail Sales data, along with the Business NZ PMI for September.
AUD/USD posted its second-lowest daily close for the current year, slightly above 0.6300. The bias remains downward, with focus on the October lows at 0.6285.
USD/CAD jumped towards 1.3700 on Dollar strength. A daily close above 1.3750 would point to a test of 1.3800.
Gold pulled back sharply from above $1,880, falling below $1,870 due to higher Treasury yields. Similarly, Silver suffered a decline, dropping below $22.00.
Like this article? Help us with some feedback by answering this survey:
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.