Forex Today: US Dollar stabilizes following CPI-inspired rally


Share:

Here is what you need to know on Friday, October 13:

The US Dollar (USD) gathered strength against its rivals following September inflation data on Thursday and the USD Index snapped a six-day losing streak. Markets stay relatively quiet early Friday as investors await speeches from central bankers. In the second half of the day, Import and Export Price Index data will be featured in the US economic docket alongside the University of Michigan's Consumer Sentiment Survey for October.

The Consumer Price Index (CPI) in the US rose 3.7% on a yearly basis in September, the US Bureau of Labor Statistics reported on Thursday. This reading matched August's increase and came in above the market expectation of 3.6%. Other details of the report revealed that the annual Core CPI inflation, which excludes volatile food and energy prices, edged lower to 4.1% from 4.3% as forecast. The probability of another 25 basis points Federal Reserve rate hike in December climbed above 30% after this data, according to the CME Group FedWatch Tool. In turn, the 10-year US yield gained traction and the USD outperformed its rivals in the American trading hours.

US Dollar price this week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar.

  USD EUR GBP CAD AUD JPY NZD CHF
USD   0.31% 0.28% 0.17% 0.86% 0.39% 1.02% -0.10%
EUR -0.31%   -0.01% -0.12% 0.56% 0.10% 0.72% -0.39%
GBP -0.28% 0.02%   -0.11% 0.53% 0.12% 0.69% -0.40%
CAD -0.17% 0.13% 0.11%   0.67% 0.22% 0.81% -0.28%
AUD -0.87% -0.51% -0.53% -0.63%   -0.41% 0.17% -0.92%
JPY -0.40% -0.09% -0.11% -0.22% 0.41%   0.55% -0.51%
NZD -1.01% -0.67% -0.69% -0.80% -0.16% -0.57%   -1.11%
CHF 0.07% 0.41% 0.38% 0.28% 0.92% 0.48% 1.09%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

 

In the early European session, the 10-year US yield stays in negative territory below 4.7% and US stock index futures trade modestly higher.

During the Asian trading hours, the data from China showed that the trade surplus widened to $77.71 billion in September from $68.36 billion in August. On a yearly basis, Imports and Exports both contracted by 6.2% in the same period. AUD/USD showed no immediate reaction to these figures and was last seen moving sideways in a narrow channel slightly above 0.6300.

EUR/USD lost nearly 100 pips on Thursday but found support before testing 1.0500. Early Friday, the pair clings to small daily gains slightly below 1.0550. European Central Bank President Christine Lagarde will be speaking at the International Monetary Fund's annual conference later in the day.

GBP/USD turned south and erased its weekly gains on Thursday. In the European morning, the pair seems to have stabilized near 1.2200. Bank of England Governor Andrew Bailey will deliver a speech at the Institute of International Finance annual meeting.

USD/JPY gathered bullish momentum and climbed above 149.50 on Thursday. The pair spent the Asian session in a tight channel near 149.70 on Friday.

Gold came under bearish pressure and closed in negative territory on Thursday. With US yields starting to edge lower early Friday, however, XAU/USD regained its traction and was last seen trading above $1,875.

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD stabilizes near 1.0500, looks to post weekly losses

EUR/USD stabilizes near 1.0500, looks to post weekly losses

EUR/USD extended its daily decline toward 1.0500 in the second half of the American session, pressured by the souring market mood. Despite the bullish action seen earlier in the week, the pair remains on track to register weekly losses.

EUR/USD News

GBP/USD falls below 1.2150 as USD rebounds

GBP/USD falls below 1.2150 as USD rebounds

Following an earlier recovery attempt, GBP/USD turned south and declined below 1.2100 in the second half of the day on Friday. The negative shift seen in risk mood amid rising geopolitical tensions helps the US Dollar outperform its rivals and hurts the pair.

GBP/USD News

Gold advances to fresh multi-week highs above $1,920

Gold advances to fresh multi-week highs above $1,920

Gold extended its daily rally and climbed above $1,920 for the first time in over two weeks on Friday. Escalating geopolitical tensions ahead of the weekend weigh on T-bond yields and provide a boost to XAU/USD, which remains on track to gain nearly 5% this week.

Gold News

Bitcoin could be an alternative to US-listed companies but not in the short term

Bitcoin could be an alternative to US-listed companies but not in the short term

Bitcoin has dipped below $27,000, adding to the subdued cryptocurrency market sentiment. While short-term price concerns persist, analysts predict a rebound based on historical figures.

Read more

Nvidia Stock Forecast: NVDA slips as Biden administration attempts to close AI chip loophole

Nvidia Stock Forecast: NVDA slips as Biden administration attempts to close AI chip loophole

Nvida's stock price opened marginally lower on Friday after Reuters reported that the Biden administration is attempting to close a loophole that allowed Chinese companies access to state-of-the-art computer chips used for AI.

Read more

Forex MAJORS

Cryptocurrencies

Signatures