Forex Today: US inflation takes center stage

Valeria Bednarik FXStreet

What you need to know on Thursday, June 10:

The dollar edged higher but majors remained within familiar levels. Speculative interest showed some signs of excitement, ahead of US inflation figures and the European Central Bank monetary policy decision, both scheduled for this Thursday. US Treasury yields edged sharply lower, with that on the 10-year note at hitting 1.47%.

Stocks traded dully, with global indexes closing mixed but not far from their opening levels.

The EUR/USD pair peaked at 1.2217 but ended the day with modest losses at around 1.2170. The European Central Bank is likely to maintain the status quo, and its cautious approach to monetary policy. It does not seem likely that policymakers will mention tapering at this early stage of the economic recovery.

GBP/USD trades near 1.4100, weighed by renewed covid concerns. UK epidemiologist Neil Ferguson said that the UK could see a third wave comparable to the second one in terms of hospitalizations, if not deaths. The new Delta strain, currently the dominant in the UK, is believed to be 60% more transmissible than the Alpha one. The UK reported over 7,500 new cases in the past 24 hours, the biggest one-day increase since February 17.

AUD/USD trades around 0.7720 while USD/CAD advanced above 1.2110, as commodity-linked currencies were weighed by the soft tone of equities. Gold lost some ground ending the day at $1,888 a troy ounce, while crude oil prices also retreated, with WTI ending the day at $69.70 a barrel.

Volatility across the FX market is at its lowest in over a year. US inflation figures may bring it back, at least temporarily.

XRP price spike from critical support hints at a 20% rally

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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