Forex Today: The FX galaxy now looks at the ECB… and US inflation

Pablo Piovano FXStreet

An unexpected rise in the US CPI in March propelled the Greenback to yearly highs and kept the risk complex under renewed and strong downside pressure. There was no news from the FOMC Minutes, while the ECB is widely anticipated to leave its policy rates unchanged on Thursday.

Here is what you need to know on Thursday, April 11:

The Greenback rose markedly and pushed the USD Index (DXY) to fresh yearly highs north of the 105.00 barrier. On April 11, Producer Prices will take centre stage, seconded by weekly Initial Jobless Claims. In addition, Fed’s Williams, Collins, and Bostic are all due to speak.

EUR/USD retreated sharply and revisited the 1.0720–1.0730 band, challenging at the same time the area of monthly lows. The ECB meets on April 11 and is seen leaving its monetary conditions unchanged. President Lagarde will also hold her usual press conference after the bank’s decision.

GBP/USD traded well on the defensive and flirted with the 2024 low in the 1.2520 zone. In the UK, GDP prints are expected in the latter part of the week.

The stronger dollar and rising US yields motivated USD/JPY to surge to the boundaries of the 153.00 hurdle. In Japan, weekly Foreign Bond Investment readings are expected on April 10.

AUD/USD collapsed to multi-day lows and put the 0.6500 support to the test on the back of the robust bounce in the greenback. The Consumer inflation expectations are due on April 11.

Shrinking hopes of a ceasefire in the Middle East bolstered the daily uptick in WTI prices despite the unexpected build of US crude oil inventories.

Gold prices retreated from recent record highs on the back of the bid bias in the dollar and rising US yields. The same performance saw Silver prices come under selling pressure after hitting new peaks around $28.50 per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD struggles aroound 1.1800 as USD stabilizes

EUR/USD stays defensive around 1.1800 in the European session on Thursday. The US Dollar stabilizes, following the recent decline led by tariff uncertainty, capping the pair's upside. All eyes now remain on the US-Iran nuclear talks after ECB President Lagarde's testimony fails to impress Euro bulls.

GBP/USD drops toward 1.3500 as USD finds fresh demand

GBP/USD falls back toward 1.3500 in the European session on Thursday, snapping its recovery momentum. The pair loses traction as the US Dollar finds fresh demand, as markets turn cautious ahead of the US-Iran nuclear talks. The US trade policy uncertainty also remains a drag on risk sentiment.

Gold clings to gains amid sustained safe-haven flows ahead of US-Iran talks

Gold sticks to its modest intraday gains through the first half of the European session on Thursday, with bulls still awaiting a sustained move and acceptance above the $5,200 mark before placing fresh bets.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.