Forex Today: Inflation risks boost US dollar, Bitcoin recovers from Musk-led blow, Jobless Claims eyed

What you need to know on Thursday, May 13:

Amid downbeat market mood, the US dollar holds the advance so far this Thursday, fuelled by the US CPI surprises. The Fed’s tightening bets are back on the table after US inflation bettered expectations.

The Asian equities tracked the Wall Street sell-off while the S&P 500 futures reversed early gains, as the safe-haven greenback continued to benefit from risk-off flows. A retreat in the US Treasury yields, however, kept the dollar’s upside in check.

The G10 currencies licked their wounds, as the recovery attempts remained shallow amid mounting inflation fears. Heading into the European session, EUR/USD consolidates in a tight range around 1.2075, as the euro traders remain little impressed by the European Commission’s upgrade to the 2021 economic forecasts.

Meanwhile, GBP/USD flirts with weekly lows near 1.4050, undermined by the dollar’s advance and Brexit jitters over the NI border issue, as the pound shrugs off upbeat UK GDP report.

Gold is attempting a bounce around $1820, having booked a 1% loss on Wednesday. WTI drops nearly 1.5% to challenge $65 amid bearish EIA data and Colonial Pipeline restart news.

Bitcoin is back above $50,000 after the massive sell-off led by Tesla Inc’s founder Elon Musk’s concerns. Musk said the company is suspending purchases using Bitcoin, citing concerns on cryptocurrency mining energy use.

Attention turns towards the US Producers Price Index (PPI) and Jobless Claims data due later this Thursday, although the next key event risk is likely to be Friday’s Retail Sales release.