Here is what you need to know on Wednesday, November 10:
Major currency pairs continue to fluctuate in relatively tight ranges after Tuesday's macroeconomic data releases and central bank speakers offered no surprises. As focus shifts to the US Consumer Price Index (CPI) inflation report and the weekly jobless claims figures, the cautious market mood allows the greenback to stay resilient against its rivals. Investors will keep a close eye on developments surrounding the negotiations over Brexit's Northern Ireland protocol as well.
Wall Street's main indexes closed in the negative territory on Tuesday with the overdue correction following the record-setting rally finally taking place. Currently, US stock index futures are down around 0.3%, the Shanghai Composite is losing nearly 1% and the Nikkei 225 is losing 0.6%. Meanwhile, the benchmark 10-yer US Treasury bond yield is up more than 1% but stays below 1.5%.
EUR/USD edged higher in the early American session on Tuesday but failed to hold above 1.1600. European Central Bank (ECB) policymaker Klass Knot reiterated that conditions for a rate hike were very unlikely to be met in 2022. German CPI data will be featured in the European economic docket but it will be a revision of the flash estimate and is unlikely to trigger a market reaction.
How to trade US inflation with EUR/USD, scenarios and levels to watch.
GBP/USD extended its rebound on Tuesday but reversed its direction after advancing beyond 1.3600. The pair stays quiet on Wednesday but heightened concerns over the UK triggering Article 16 could start weighing on the British pound.
USD/JPY closed the last four trading days in the red and seems to have gone into a consolidation phase around 113.00. Although the risk-averse market environment is helping the safe-haven JPY find demand, rising US T-bond yields are limiting USD/JPY's downside.
AUD/USD extended its slide after breaking below and trades at its lowest level in nearly a month around mid-0.7300s on Wednesday. In the early trading hours of the Asian session on Thursday, the October jobs report from Australia will be looked upon for fresh impetus.
Gold climbed to its strongest level in more than two months at $1,833 on Wednesday before going into a consolidation phase below $1,830 on Wednesday. XAU/USD continues to react to fluctuations in the US T-bond yields.
US October CPI preview: Inflation data unlikely to discourage gold bulls.
Cryptocurrencies: Bitcoin retreated modestly after touching a new all-time high above $68,000. Ethereum trades with modest losses around $4,700 early Wednesday. Ripple is losing more than 2% after rising to a fresh two-month near $1.3 on the back of a 5% increase on Monday.
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