Forex World News : Dollar bounces higher as traders brace for inflation data

Date : 2021 / 06 / 11

Here is what you need to know on Friday, June 11:

Markets sustain the upbeat mood and the dollar remains range-bound despite strong inflation numbers. The focus shifts to US Consumer Confidence as well as potential progress in bipartisan talks. A delay of the UK’s reopening is weighing on sterling, oil extends its gains and cryptocurrencies are consolidaing. 

The S&P 500 Index hit yet another record high on Wednesday as investors shrugged off fears the jump in headline inflation to 5%, the highest since 2008. Markets seem convinced that the Federal Reserve would see through rising prices and continue labeling inflation as transitory. 

 

US 10-year bond yields tumbled well below 1.50%, dragging the dollar down with them.  

EUR/USD is changing hands near 1.22 despite the European Central Bank’s decision to keep the pace of bond buying elevated. ECB President Christine Lagarde said that it is premature to talk about exiting the QE program. The bank also upgraded its growth forecasts, as expected.

GBP/USD is hovering under 1.42 amid ongoing Brexit acrimony and reports that Prime Minister Boris Johnson will delay the reopening by four weeks. The last stage of returning to normal is scheduled for June 21 but the fast spread of the Delta variant has pushed policymakers to change their minds. 

Written by FTG, Author from Investing

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