Forex Today: Markets shrug off Chinese inflation data, cryptos pressured, Brexit, BOC eyed
|Here is what you need to know on Wednesday, June 9:
Markets have maintained their calm in anticipation of US inflation figures and after the Chinese PPI shot higher. Cryptocurrencies are struggling amid growing pressure from various points. The BOC is set to leave rates unchanged and virus developments are eyed, especially in the UK.
China reported a whopping 9% YoY leap in producer prices in May, above expectations and pointing to higher consumer prices down the line. Tension is mounting ahead of Thursday's US Consumer Price Index statistics, which could push the Federal Reserve toward tapering its bond buys.
US CPI May Preview: Inflation angst is coming
The dollar remains stable across the board. EUR/USD is hovering under 1.22 after mixed eurozone figures on Tuesday and as restrictions are eased across the old continent.
GBP/USD is changing hands around 1.4150 as policymakers are contemplating a delay to the UK's planned reopening on June 21. Moreover, sterling is struggling with fresh tensions about the implementation of the Northern Irish protocol. The EU's point-person is in London for talks.
The Bank of Canada is set to leave rates unchanged at 0.25% and provide more information about its announcement to taper down its bond buys. The Canadian dollar is supported by the increase in oil prices – WTI has topped the $70 level.
Bank of Canada Preview: QE reduction to continue later in 2021
Bitcoin is trading around $33,000 after dipping below $31,000 on Tuesday, dragging Ethereum and other digital assets lower as well. The latest blows came from the White House, which intends to raise the role of cryptos in ransomware at the upcoming G-7 Summit and China's crackdown.
One of the latest stars, Shiba Inu, also struggled but seems to be turning around.
SHIB Price Forecast: Shiba Inu bulls start to take control
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