Forex Today: Euro rebounds as focus shifts to ECB policy announcements

Eren Sengezer FXStreet

Here is what you need to know on Thursday, April 14:

The greenback weakened against its major rivals on Wednesday amid improving market mood and falling US Treasury bond yields. After snapping a nine-day winning streak, the US Dollar Index continues to edge lower early Thursday. The shared currency holds its ground ahead of the highly-anticipated policy announcements of the European Central Bank (ECB). Later in the day, the US economic docket will feature the Retail Sales report for March and the weekly Initial Jobless Claims data.

ECB April Preview: Quicker end to QE to help euro recover.

The data from the US showed on Wednesday that the annual producer inflation climbed to 11.2% in March from 10.3% in February. Although this print came in higher than the market expectation of 10.6%, Wall Street's main indexes registered strong daily gains and the benchmark 10-year US T-bond yield closed in the red for the second straight day.

Meanwhile, US stock index futures indexes are up between 0.2% and 0.4%, suggesting that the market environment is likely to remain risk-positive. It's worth noting, however, that a relief rally might be hard to come by amid the coronavirus-related lockdowns in China and the ongoing conflict between Russia and Ukraine.

US Retail Sales March Preview: Waiting for the inflation hammer to drop.

USD/CAD lost nearly 100 pips on Wednesday and closed below 1.2600. The pair trades in negative territory at around 1.2550 in the European morning. The Bank of Canada (BOC) hiked its policy rate by 50 basis points to 1%. In the press conference, Bank of Canada Governor Tiff Macklem said that the bank is prepared to move as forcefully as needed to tackle inflation.

EUR/USD managed to build on Wednesday's rebound and was last seen posting modest daily gains above 1.0900.

ECB Preview: Forecasts from 12 major banks, tighter policy in response to higher inflation.

GBP/USD took advantage of the selling pressure surrounding the greenback and extended its recovery above 1.3100.

USD/JPY surged to its highest level in nearly two decades above 126.00 on Wednesday but erased the majority of its daily gains amid retreating US T-bond yields. The pair stays relatively quiet near mid-125.00s early Thursday.

Gold capitalized on falling US yields and reached a monthly top above $1,980 before going into a consolidation phase near $1,970 early Thursday.

Bitcoin edged higher on the back of risk flows on Wednesday. BTC/USD clings to small daily gains above $41,000 on Thursday. Ethereum gained 3% on Wednesday and started to fluctuate in a tight range at around $3,100.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD keeps losses near 1.1400 ahead of Eurozone inflation data

EUR/USD keeps the offered tone intact near 1.1400 in early Europe on Wednesday, pressured by receding bets for aggressive tightening by the European Central Bank (ECB). Traders will take more cues from the preliminary reading of the Eurozone's Harmonized Index of Consumer Prices and the US Manufacturing PMI report due later in the day.

Gold sticks to bearish bias below $4,000 amid Fed hike bets and Iran risks

Gold attracts fresh sellers following the previous day's good two-way price swings, and weakens further below the $4,000 psychological mark through the Asian session. This marks the third straight day of a slide and keeps the precious metal closer to its lowest level since November 2025. Moreover, a bullish US Dollar suggests that the path of least resistance for the bullion is to the downside.

Solana: Retail confidence backs SOL testing 50-day EMA breakout near $75

Solana price extends gains, testing the 50-day Exponential Moving Average around $75.00. Although institutional demand for Solana remains weak, stabilizing retail confidence, with rising funding rates and steady Open Interest, supports the mild recovery. The technical outlook for SOL shifts mildly bullish, projecting a potential breakout rally toward the $100 mark.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The European Central Bank Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Federal Reserve, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.