Forex Today: US Dollar on the back foot following CPI-inspired selloff

Rupee vs Dollar

Something you should be aware of on Thursday, April 13 is as follows:

The US Dollar is struggling to find demand early on Thursday after suffering significant losses versus its key competitors on Wednesday due to weak inflation data. The US economic docket will include the US Department of Labor’s weekly initial jobless claims data as well as the Producer Price Index figures for March. Eurostat will also release data on industrial production for the month of February.

In contrast to the market expectation of 5.2%, the annual Consumer Price Index (CPI) in the US fell to 5% in March from 6% in February. The US Dollar Index (DXY) broke below 102.00 as a result of the initial response, and the yield on US 10-year Treasury bonds dropped precipitously. Early on Thursday, the DXY remains below 101.50, and the 10-year US T-bond yield appears to have stabilised at about 3.4%. US stock index futures are trading slightly higher during the European session after Wednesday’s erratic trading on Wall Street.

According to figures from China released on Thursday, the trade surplus decreased from $116.8 billion in February to $89.19 billion in March. This result was substantially better than the market’s forecast of a $39.2 billion surplus.

The EUR/USD made significant gains on Wednesday and extended those gains early on Thursday. A few pip above 1.1000, the pair was last seen trading at its highest level since early February.

The GBP/USD exchange rate remains positive and trades above 1.2500. The pair maintains its proximity to the multi-month high it reached on April 4 at 1.2527.

Early on Thursday, the Australian Bureau of Statistics revealed that in March, the unemployment rate stayed at 3.5% with an employment change of +53K. The positive jobs report and China’s trade data helped the AUD/USD pair gain momentum, as it was last seen up more than 0.5% on the day at about 0.6730.

During its meeting in April, the Bank of Canada (BoC) did as anticipated and kept its policy rate at 4.5 percent. The Governing Council will continue to determine whether monetary policy is adequately restrictive, the BoC reaffirmed in the policy statement, adding that they are ready to raise rates if necessary. The USD/CAD currency pair closed Thursday’s trading session in the red for the third straight day. At about 1.3400, the pair was last seen trading at its lowest point in more than a month.

The gold price increased in response to the US inflation figures released on Wednesday, but it quickly lost ground as US yields began to rise. Early on Thursday, XAU/USD appears to have found its footing; it was last seen trading in the green above $2,020.

On Wednesday, bitcoin experienced little losses before Thursday’s stability near $30,000 took hold. Wednesday saw an increase of almost 1% for Ethereum, while early Thursday saw a modest increase. At the time of publication, ETH/USD was trading at $1,930, up little for the day.