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 regains balance, targets 1.1800

EUR/USD has lost a bit of momentum after its earlier push higher and is now attempting to reclaim the key 1.1800 barrier on Monday. In the meantime, investors remain focused on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD recedes from tops, back to 1.3500

GBP/USD is extending its move higher on Monday, meeting some resistance around 1.3530 on the back of the widespread bearish tone in the US Dollar amid ongoing uncertainty around tariffs. For now, traders are watching overall risk sentiment and central bank rhetoric for the next directional cue.

Gold advances to four-week highs, focus is on $5,200

Gold is holding onto its bullish tone on Monday, hovering near monthly highs well above the $5,100 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.