Here is what you need to know on Wednesday, October 13:
Major currency pairs stayed within familiar ranges on Tuesday as investors remained on the sidelines while waiting for high-impact data releases. The sour market mood made it difficult for risk-sensitive assets to find demand but falling US Treasury bond yields weighed on the dollar. The US Dollar Index was posting modest daily losses around 94.35 at the time of press and the benchmark 10-year US T-bond yield, which lost 3.5% on Tuesday, was down 0.5%.
Macro data: The data from the US showed that the NFIB Business Optimism Index edged lower to 99.1 from 100.1 in August and JOLTS Job Openings declined to 10.3 million in August, missing the market expectation of 10.9 million. The US Bureau of Labor Statistics will publish the September Consumer Price Index (CPI) at 1230 GMT and the Federal Reserve will release the minutes of its September policy meeting at 1800 GMT.
US Consumer Price Index September Preview: Inflation averaging, what inflation averaging?
Wall Street: Pressured by a more-than-1% decline witnessed in the Communication Services Index, the S&P 500 lost 0.24% on Tuesday and the Nasdaq Composite erased 0.15%. Furthermore, the Dow Jones Industrial Average fell 0.35%. Meanwhile, the US House approved the legislation to temporarily raise the debt ceiling until early December but this development doesn't seem to be having a noticeable impact on market sentiment.
FOMC Minutes Preview: Fed to reiterate taper message, sending the dollar up, stocks down.
EUR/USD pair slumped to its weakest level since July 2020 at 1.1524 as dovish commentary from European Central Bank (ECB) policymakers continues to hurt the common currency. Currently, the pair is posting modest recovery gains around 1.1550.
GBP/USD fluctuates around 1.3600 for the third straight day on Wednesday. The data from the UK revealed that the Industrial Production and Manufacturing Production both expanded at a stronger pace than expected in August but market participants showed little to no interest in these data.
USD/JPY lost its bullish momentum on falling US Treasury bond yields but stays within a touching distance of the 34-month high it set at 113.80 on Tuesday.
Crude oil prices stay in a consolidation phase following the impressive upsurge seen earlier in the week. The Barrel of West Texas Intermediate is staying relatively quiet above $80 ahead of the EIA's weekly Crude Oil Stocks Change on Thursday.
Gold managed to close in the positive territory on Tuesday and holds above $1,760 in the early European session on Wednesday. Nevertheless, XAU/USD might need to break out of the $1,750-70 range to attract investors.
Cryptocurrencies: Bitcoin extended its technical correction and lost more than 2% on Tuesday. Currently, BTC is testing $55,500. Meanwhile, Ethereum and Ripple both trade in the negative territory. In its recently published Global Financial Stability Report, the International Monetary Fund advised against developing economies adopting digital currencies
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
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.