US inflation data is influencing the market

After the release of macroeconomic data on Tuesday and the central bank speaking, major currency pairs are fluctuating in a relatively tight range.

The market mood is allowing the dollar to stay strong against its rivals. The public focus is shifting to the US Consumer Price Index, CPI, the inflation report and, the weekly jobless claims figures. Investors are mainly observing the negotiations’ developments over the Brexit’s Northern Ireland protocol.

Outlook on the market of November 10th

On Tuesday, the main indexes of Wall Street closed in the negative territory. Meanwhile, the overdue correction followed the record-setting rally finally taking place. On Wednesday, the US stock index futures had a 0.3% decline, the Shanghai Composite had around 1% loss and the Nikkei 225 is experiencing a 0.6% loss. This is while, the benchmark 10-yer US Treasury bond yield had a 1% increase in value, but remains under 1.5%.

EUR/USD pair had edged higher in the early American session on Tuesday, however failed to remain above the 1.1600 level. Klass Knot, the European Central Bank (ECB) policymaker stated that a rate hike in 2022 is very unlikely. Even though the German CPI data is being featured in the European economic docket, it will be a revision of the estimations and it most likely will not result in a market reaction.

GBP/USD pair is continuing its rebound on Tuesday, even though it reserved its movements after advancing beyond 1.3600. The pair remained relatively quiet on Wednesday.

This is while the traders are concerned over the UK triggering Article 16. This is due to the fact that it might weigh on the British pound.

USD/JPY pair remained in the red territory for the last four trading days. This pair is in a consolidation phase of around 113.00. While the risk-averse market environment is trying to find demand for the JPY, the US T-bond yields’ rise is limiting USD/JPY’s fall.

AUD/USD pair is on a fall trend after breaking below. On Wednesday this pair was traded at its lowest level in a month near mid-0.7300s. The October jobs report from Australia is expected to be looked upon for fresh impetus, in the early trading hours of the Asian session on Thursday.

Gold was around its strongest level in more than two months near $1,833 on Wednesday. Later on, that day it went into a consolidation phase below $1,830. This is while XAU/USD pair continues to react to fluctuations in the US T-bond yields.