Today's forex news: Major currencies failed to maintain recovery
EUR/USD ⬇️
GBP/USD ⬇️
AUD/USD ⬇️
USD/CAD ⬆️
XAU ⬆️
WTI ⬇️
Despite a brief rally, major currencies like the Euro and British Pound returned their gains against the US dollar. EUR/USD reached a daily high at 1.0933, before slumping to 1.0883. As the first round of French Presidential concluded with a minor lead for the current French leader March, further volatility was introduced to the Euro as reports claimed Russia will commence a new offensive on Donbas region, the allegedly pro-Russian Ukraine eastern territory.
GBP/USD bounced back from 1.2992, retaining minor oscillation at 1.3030 level, and closed at 1.3029. This is partly contributed by a mixed bag of domestic UK yields, month-on-month GDP only had a minor increase of 0.1%, falling short of the 0.3% increase forecast. However the year-on-year production figures outperformed the forecasts. Insights on the UK labor market shall be revealed later today, as the UK National Statistics will release the latest claimant count change and three-month ILO unemployment rate.
AUD/USD recorded a daily high at 0.7462, and slided to 0.7420 level, and the closing price was 0.7419. The surge in commodity prices was not enough to counteract the disruption in the global supply chain, caused by the continued Russian invasion of Ukraine, and the latest health crisis in China.
Major announcements will be made by the Bank of Canada tomorrow (13 April) regarding its interest rate decision and monetary policy. The central bank is expected to increase interest rate by 50bps, to follow the US Federal Reserve. The US dollar extended its rally against the Canadian currency, USD/CAD continued to climb, and closed at 1.2631.
The risk aversion mood benefitted United States 10-Year Bond Yield to another extended period of growth, which rose to 2.793%, the highest level since January 2019. Gold price rallied due to the sour market mood and global inflation, and closed at 1,948.2 as it mostly plateaued at 1952 level.
Crude oil price recovered from a low of 93.00 and closed at 94.29. Although the Organization of the Petroleum Exporting Countries (OPEC) claimed it cannot increase output to offset lost supply from banning Russian oil, the health crisis in China and its 1.5% inflation rate lowers demand, driving crude oil to be bearish.
In addition, the US Department of Labor Statistics will announce the monthly and yearly Consumer Price Index (CPI) today (12 April), excluding Food & Energy, serving as indicators of US living costs and inflation.
📱 Get instant market news delivered to you in real time on Mitrade