What you need to take care of on Thursday, October 13:
The American Dollar finished Wednesday little changed, despite some noise coming from major central banks. Investors await US inflation data, which could provide fresh clues on where the US Federal Reserve is heading next
The Bank of England (BOE) Governor Andrew Bailey was once again on the wires this Wednesday amid the latest emergency program. Rumors that the central bank could extend its latest emergency founding program beyond this week triggered risk appetite early on Wednesday, although the BOE quickly denied such a possibility, sending investors back into the US Dollar. Bank of England Chief Economist Huw Pill later noted that he believes a “significant” monetary policy response would be required in November.
UK Prime Minister Liz Truss aims to move forward with the mini-budget, despite criticism about the £60 billion funding hole. Truss repeated that she would not cut public spending, despite tax cuts and skyrocketing inflation.
Mid-US afternoon, the US Federal Reserve released the Minutes of the latest meeting. Policymakers repeated they are determined to maintain the restrictive monetary policy to control elevated inflation. Additionally, officials said that once they reach what they consider a restrictive level, “it would be appropriate to keep it there for a period of time.”
Restricted volatility could be blamed on the upcoming US Consumer Price Index report. Inflation is expected to have risen by 8.1% YoY, decreasing slightly from the previous 8.3%. Core inflation, on the other hand, is expected to have ticked higher toward its recent multi-decade high of 6.5%. Also, Germany will publish the final estimate of its September CPI, foreseen steady at 10.9% in its EU harmonized version.
Despite being away from investors’ radar, coronavirus may soon become a theme across financial markets. China’s zero-covid policy is seeing fresh shutdowns in the country, with Shanghai closing schools, bars, gyms, and other venues. China is not alone, as Europe and the WHO warned about a new wave entering Europe, which could be complicated by a resurgence of flu.
The EUR/USD pair remains stable at around 0.9700, while GBP/USD has been a bit more volatile, ending the day at around 1.1100. The USD/CAD currently trades at 1.3810, while AUD/USD is up to 0.6280.
The Japanese yen plunged against the greenback, with USD/JPY reaching a fresh multi-decade high of 146.96, holding on to gain as the Bank of Japan refrained from intervening.
Gold ticked higher and trades around $1,675 a troy ounce, while crude oil prices extended their slide. WTI is now at $87.20 a barrel.
Bitcoin price: The slingshot is pulled back, BTC ready to test $16,900?
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.