Forex Today: Risk tone improves on trade progress, focus shifts to ECB

Dhwani Mehta FXStreet

Here is what you need to know on Wednesday, September 11:

- Market mood improves on fresh US-China trade optimism after Global Times editor reported China will introduce important measures to ease the negative impact of the trade war. Meanwhile, China released tariffs exemption list for products from the US.

- The US yields extend gains alongside Asian equities and Wall Street futures while and dollar eases against the euro and risk/ commodity currencies. The Yen remains the main laggard at six-week lows near 107.85 vs. the buck on trade progress and dovish BOJ expectations.

- EUR/USD clings to minor gains around 1.1050 amid the recent rally in German bund yields, awaiting Thursday’s ECB monetary policy outcome. The German stimulus talks pushed 30-year bund yields into positive territory.

- GBP/USD trades above 1.2350 ahead of an empty UK docket and bi-weekly EU-UK Brexit negotiations. UK Parliament passed a law to block a no-deal Brexit. UK MPs launched a new group to try to secure Brexit deal. PM Johnson said that he is opposed to the idea of a so-called Northern Ireland-only backstop to get a Brexit deal done.

- Oil prices jump on large US crude inventory draw, reversing the drop fueled by speculation of sanctions-hit Iranian crude returning to the market after US President Trump’s fired Iran-policy hawk, Bolton. Meanwhile, Gold holds the lower ground sub-$ 1500.

- Cryptocurrencies return to the red, with Bitcoin battling 10k level.

Key events ahead

GMT	Event	Consensus	Previous
Wednesday, Sep 11
11:00	USD MBA Mortgage Applications		-3.1%
12:30	USD Producer Price Index ex Food & Energy (MoM)	0.2%	-0.1%
12:30	USD Producer Price Index ex Food & Energy (YoY)	2.2%	2.1%
12:30	USD Producer Price Index (YoY)	1.7%	1.7%
12:30	USD Producer Price Index (MoM)	0.0%	0.2%
12:30	CAD Capacity Utilization	81.8%	80.9%
14:00	USD Wholesale Inventories	0.2%	0.2%
14:30	USD EIA Crude Oil Stocks Change	-2.600M	-4.771M
17:00	USD 10-Year Note Auction		1.67%
22:45	NZD Food Price Index (MoM)		1.1%
23:01	GBP RICS Housing Price Balance	-11%	-9%
Thursday, Sep 12
06:00	EUR Consumer Price Index (MoM)	-0.2%	-0.2%
06:00	EUR Consumer Price Index (YoY)	1.4%	1.4%
06:00	EUR Harmonized Index of Consumer Prices (YoY)	1%	1%
06:00	EUR Harmonized Index of Consumer Prices (MoM)	-0.1%	-0.1%
06:30	CHF Producer and Import Prices (YoY)		-1.7%
06:30	CHF Producer and Import Prices (MoM)		-0.1%
09:00	EUR Industrial Production w.d.a. (YoY)	-1.3%	-2.6%
09:00	EUR Industrial Production s.a. (MoM)	-0.1%	-1.6%
11:45	EUR ECB Deposit Rate Decision	-0.5%	-0.4%
11:45	EUR ECB Interest Rate Decision	0%	0%
12:30	USD Initial Jobless Claims	215K	217K
12:30	USD Initial Jobless Claims 4-week average		216.25K
12:30	USD Continuing Jobless Claims	1.690M	1.662M
12:30	USD Consumer Price Index (MoM)	0.1%	0.3%

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.