Forex Today: Majors trade in familiar ranges ahead of US inflation data

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.

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays pressured as shares slump on Powell's hawkish rhetoric

EUR/USD bears stay in control as Asian shares take a plunge. The Fed's hawkishness is reverberating throughout global markets, weighing on risk-sensitive currencies. The US dollar is bid in Asia and risk aversion remains in play.


GBP/USD refreshes monthly low under 1.3450 as Fed, Brexit and UK politics favor bears

GBP/USD takes offers to renew monthly low, down for the second consecutive day. EU to sue UK over deal in bonkers, delay in Brexit talks over NI. Sue Grey's report awaited as UK PM Johnson defends drinks party, animal evacuation from Afghanistan adds to the problems.


Gold bears await US Q4 GDP for the next leg lower Premium

Gold price is licking its wounds near weekly lows of $1,813, as bears take a breather in the aftermath of the Fed decision while waiting for the US advance Q4 GDP and Durable goods data. The US economy is likely to have regained steam in Q4, 2021.

Gold News

Why Bitcoin price could form a bottom following the January 28 options expiry

Bitcoin open interest volume by expiry date indicates a majority of bearish sentiment in the market. BTC options worth roughly $2 billion will expire by the end of this week. However, options expiry has correlated with massive liquidations and price crashes in the past.

Read more

US GDP Preview: Inflation component could steal the show, boost dollar. Premium

More than double than pre-pandemic – the 5% annualized growth rate expected for the fourth quarter is a reason to be cheerful. That may boost the dollar, but not stocks, which are wary of tighter monetary policy from the Fed.

Read more