Forex Today: US inflation takes center stage

Valeria Bednarik FXStreet

What you need to know on Thursday, June 10:

The dollar edged higher but majors remained within familiar levels. Speculative interest showed some signs of excitement, ahead of US inflation figures and the European Central Bank monetary policy decision, both scheduled for this Thursday. US Treasury yields edged sharply lower, with that on the 10-year note at hitting 1.47%.

Stocks traded dully, with global indexes closing mixed but not far from their opening levels.

The EUR/USD pair peaked at 1.2217 but ended the day with modest losses at around 1.2170. The European Central Bank is likely to maintain the status quo, and its cautious approach to monetary policy. It does not seem likely that policymakers will mention tapering at this early stage of the economic recovery.

GBP/USD trades near 1.4100, weighed by renewed covid concerns. UK epidemiologist Neil Ferguson said that the UK could see a third wave comparable to the second one in terms of hospitalizations, if not deaths. The new Delta strain, currently the dominant in the UK, is believed to be 60% more transmissible than the Alpha one. The UK reported over 7,500 new cases in the past 24 hours, the biggest one-day increase since February 17.

AUD/USD trades around 0.7720 while USD/CAD advanced above 1.2110, as commodity-linked currencies were weighed by the soft tone of equities. Gold lost some ground ending the day at $1,888 a troy ounce, while crude oil prices also retreated, with WTI ending the day at $69.70 a barrel.

Volatility across the FX market is at its lowest in over a year. US inflation figures may bring it back, at least temporarily.

XRP price spike from critical support hints at a 20% rally

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.