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.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.