February 24, 2024
London, UK

Forex Today

Forex Markets

Forex market and the U.S dollar index trying to stabilize after yesterday’s sell-off and a strong rebound in the equities markets. The U.S CPI came in at 8.2%, year over year, above the consensus of 8.1%.

Traders bought the DXY after the CPI announcement but soon the momentum reversed as prices hit critical support levels and a rebound started, then accelerated by the end of the U.S. trading session on short covering. Investors now expect a 75 basis point interest rate hike in November and mostly one more hike in December.

EURUSD

EURUSD was among the first pairs that turned positive in the forex markets after hitting two-week lows at $0.9632, the pair closed yesterday just below the 0.98 mark. Earlier today announced that the Germany Wholesale Price Index on a yearly basis came in at 19.9% well above the expectations of 19% in September. As of writing EURUSD is 0.13% lower at $0.9761.

GBPUSD

GBPUSD outperformed and surged more than 2% on Thursday supported by indications that the UK government might change the fiscal plan that created the turbulence in gilds and the pound. The Bank of England (BOE) announced earlier in the week that it will end the debt buyback scheme today. Economists now expect a 75 to 100 basis points interest rate hike in the November meeting.

USDJPY

USDJPY hit 40-year highs at 147.67 on Thursday after the U.S. CPI report but also turned to losses one hour after the announcement on speculation of a Bank of Japan intervention. USDJPY is trading today 0.27% higher at $147.58. DXY is trading 0.23% higher at $112.60.

AUDUSD

AUDUSD continues higher today after yesterday’s impressive rebound from 30-month lows. China’s Consumer Price Index in September came in at 2.8% in line with market expectations. The Producer Price Index (PPI) reported at 0.9% below the forecasts of 1.0%, the previous reading was at 2.3%.

Volatility will remain elevated today as traders will focus later on Retail Sales figures, the Michigan Consumer Sentiment report, the Business Inventories and Export/Import Prices.

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