Everything you need to know to trade today Thursday 8 September,
before he European Central Bank (ECB) announces its monetary policy at 12:15 GMT, markets remain relatively calm. ECB expected to increase its interest rate by 75 basis points (bps), but some experts believe that there is still a relatively strong possibility that the bank will hike the rate by 50bp. The ECB will also publish its updated economic projections and the President of the ECB, Christine Lagarde, will give his comments on political decisions at a press conference beginning at 12:45 GMT. Meanwhile, the FOMC President’s speech, Jerome PowellAt 13:10 GMT, markets will be closely watched by participants as the Fed prepares to enter a “quiet period” on Saturday.
View: European Central Bank preview: Between Putin and high inflation, the deck is against the euro
After hitting its highest level in 20 years at 110.78 on Wednesday, the DXY dollar index edged lower during the US session and lost more than 0.5% on the day. The positive risk environment in the markets, reflected in a decisive rally in major Wall Street indices, has made it difficult for the dollar to maintain its strength. In addition, the Fed mentions in its Beige Book that companies were seeing progress in labor supply and price pressures, which meant an additional load for the dollar. US stock index futures are trading in negative territory in the European region on Thursday morning and the benchmark 10-year US Treasury yield posted a minor loss of around 3.25%, pointing to a cautious market environment.
EUR/USD Gained around 100 pips on Wednesday and tested the parity level on Thursday before entering the consolidation phase.
See: ECB forecast: do tough times call for tough action?
GBP/USD After being adopted by Bank of England officials, fell to the lowest level of 1.1400 since March 2020 on Wednesday Cautious tone on monetary policy and economic outlook, The pair moved towards 1.1500, with the dollar facing strong selling pressure in the US session. At the time of writing, GBP/USD is down 0.35% on the day, trading at 1.1485.
AUD/USD Remains low in the early hours of Thursday and is trading negative below 0.6750. Australian data in the first Asian session showed that Exports declined 9.9% year-on-year In July.
USD/JPY Pulled back from multi-decade high of 145.00 on Wednesday but closed the day in positive territory. The pair remains relatively calm in the early hours of Thursday below 144.00. Data from Japan showed that Economy expanded at an annual rate of 3.5% in the second quarterHigher than market expectation of 2.9%.
auro On Wednesday, the US took advantage of the fall in yields and registered strong gains. XAU/USD is trading sideways in a tight channel below $1,720 in European morning on Thursday.
on Wednesday, Bank of Canada hikes interest rate by 75 basis points, up to 3.25% as expected. In its monetary policy statement, the Bank of Canada said rates would continue to rise given the outlook for inflation. USD/CAD It fell nearly 100 points from multi-week highs above 1.3200 during the US session on Wednesday. At the time of writing, the pair is trading in a tight range below 1.3150.
After Tuesday’s sharp drop, Bitcoin It gained nearly 3% on Wednesday but lost its upside momentum before reaching $20,000. Ethereum Support was found near $1,500 and was up 4.5% on Wednesday. ETH/USD is trading in negative territory early Thursday but manages to hold above $1,600.