Here’s what you need to know on Friday, June 10:
The euro sell-off that was triggered during European Central Bank (ECB) President Christine Lagarde’s press conference on Thursday appears to have taken a break early Friday. Ahead of the May US consumer price index (CPI) data, the market mood remains upbeat with US stock index futures trading in positive territory on European morning. There will be no high-level data releases from the eurozone, but market participants will closely monitor ECB officials’ comments on the policy outlook.
Following its monetary policy meeting in June, the ECB left its key interest rates unchanged as expected and revealed that it would raise rates by 25 basis points (bps) in July. The bank refrained from committing to a 50bp hike in September and lowered its 2022 growth forecast to 2.8%. of 3.7%.
ECB Quick Analysis: EUR/USD Selling Opportunity? Dovish short-term orientation trumps all.
Investors forecast the annual CPI in the US to remain unchanged at 8.3% in May, while they expect the core CPI to retreat to 5.9% from 6.2%. Anticipating this event, “although Fed policy for at least the next two meetings will not be affected by the May or June CPI results, there is considerable room for a market response depending on the deviation from forecasts”, said FXStreet analyst Joseph Trevisani. . “There are good reasons to suspect that a portion of the May oil and gas price increases were not captured in the surveys of analysts producing the forecasts.”
US CPI Preview: Soft core set to lower dollar and two other scenarios.
EUR/USD lost over 100 pips on Thursday before staging a modest bounce back to 1.0650 early on Friday. ECB policymaker Francois Villeroy de Galhau said earlier in the day that the ECB will gradually raise interest rates until they reach the neutral rate, which is between 1% and 2%.
US dollars/Canadian dollars rose to its highest level in more than 10 days on overall dollar strength on Thursday and was last seen moving sideways near 1.2700. Statistics Canada will release its May jobs report later in the session. Investors see the Canadian Unemployment Rate remain unchanged at 5.2% with the Net Change in Employment rising by 30,000.
USD/JPY it turned south during Asian trading hours on Friday and fell below 133.50. The yield on the benchmark 10-year US Treasury note is moving lower, making it difficult for the pair to gain traction.
GBP/USD it extended its slide for the second day in a row on Thursday and closed below 1.2500. The pair remain on the defensive on Friday.
Prayed posted small daily losses on Thursday before entering a consolidation phase below $1,850 on Friday. The reaction of US Treasury yields to US inflation data could increase XAU/USD volatility ahead of the weekend.
Bitcoin continues to fluctuate in a tight range near $30,000 and Ethereal extends his side grind to around $1,800.