Forex Market Update: ECB Decision & US Inflation
Forex Market Update – September 12, 2024
The forex market is seeing steady activity today, with traders closely watching the upcoming ECB decision and reviewing the latest US inflation data released yesterday.
Major Currency Pairs:
- EUR/USD: The euro is trading at 1.10150, up 0.04% today, though it has dropped 0.85% for the week. The market is waiting for the ECB rate decision later today, which is expected to keep interest rates steady. However, any change in tone regarding inflation could influence the euro’s direction(Currency Transfers).
- GBP/USD: The pound is trading at 1.30512, up 0.10% today. The pound continues to see pressure as recent UK GDP data showed zero growth for July. Traders are focusing on the Bank of England’s next steps(Currency Transfers).
- AUD/USD: The Australian dollar is at 0.66878, up 0.20% for the day. However, the pair is down 0.79% for the week, reflecting global risk sentiment amid China’s economic slowdown(Currency Transfers).
- USD/JPY: The yen remains weak, trading at 142.543, down 0.07% today. This reflects the ongoing influence of US inflation data, which raised expectations of further Federal Reserve rate hikes(Currency Transfers).
Commodities:
- Crude Oil: WTI crude is trading at $68.21 per barrel, up 1.34% today, reflecting optimism over global demand recovery. However, it remains down 1.36% for the week(Currency Transfers).
- Brent Crude: Brent is trading at $71.65, up 1.48% today. Despite the rise, the global oil benchmark remains down 1.42% for the week(Currency Transfers).
- Gold: Gold is holding at $2,517.89 per ounce, rising 0.24% today as investors continue to seek safety amid concerns over inflation and central bank policies(Currency Transfers).
Metals:
- Silver: Silver is trading at $28.79, up 0.40% today but remains relatively flat for the week. It’s up 26.10% year-on-year(Currency Transfers).
- Copper: Copper is at $4.13 per pound, up 0.63% today, driven by renewed demand for industrial metals(Currency Transfers).
Key Events Today:
- ECB Meeting: The European Central Bank is expected to announce its latest rate decision today. While markets expect no changes to the rates, the focus will be on the bank’s outlook on inflation and economic growth in the eurozone.
- US CPI Data: Yesterday’s CPI report showed a slight increase in inflation, reinforcing expectations that the Federal Reserve may maintain higher interest rates for longer. This continues to support the US dollar against currencies like the yen and the euro(Currency Transfers).