Created
: 2024.10.11
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Forex Today: US Dollar consolidates weekly gains ahead of producer inflation data
World FX news
Breaking news
Forex Today: US Dollar consolidates weekly gains ahead of producer inflation data
New
2024.10.11 17:09
2024.10.11 17:09
2024.10.11 17:09
Here is what you need to know on Friday, October 11:
Following Thursday's volatile action, markets seems to have stabilized to begin the last trading day of the week. The US economic calendar will feature Producer Price Index (PPI) data for September and the University of Michigan's Consumer Sentiment Survey for October. In the early American session, Statistics Canada will publish the labor market data for September.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.25% | 0.33% | 0.04% | 1.35% | 0.74% | 0.98% | -0.21% | |
| EUR | -0.25% | 0.14% | -0.16% | 1.12% | 0.46% | 0.71% | -0.51% | |
| GBP | -0.33% | -0.14% | -0.35% | 0.99% | 0.32% | 0.60% | -0.54% | |
| JPY | -0.04% | 0.16% | 0.35% | 1.32% | 0.70% | 0.90% | -0.23% | |
| CAD | -1.35% | -1.12% | -0.99% | -1.32% | -0.57% | -0.38% | -1.56% | |
| AUD | -0.74% | -0.46% | -0.32% | -0.70% | 0.57% | 0.29% | -0.91% | |
| NZD | -0.98% | -0.71% | -0.60% | -0.90% | 0.38% | -0.29% | -1.17% | |
| CHF | 0.21% | 0.51% | 0.54% | 0.23% | 1.56% | 0.91% | 1.17% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), declined to 2.4% on a yearly basis in September from 2.5% in August, the US Bureau of Labor Statistics (BLS) reported on Thursday. Other details of the report showed that the core CPI, which excludes volatile food and energy prices, rose 3.3% on a yearly basis, coming in above the August reading and the market forecast of 3.2%. The monthly core CPI was up 0.3% in September. The US Dollar (USD) failed to benefit from these readings as the weekly Initial Jobless Claims came in at 258,000 in the week ending October 5, up sharply from 225,000 in the previous week. After reaching its highest level in nearly a month at around 103.20 on Thursday, the USD Index closed the day flat and went into a consolidation phase below 103.00 early Friday.
The data published by the UK's Office for National Statistics showed on Friday that the Gross Domestic Product expanded by 0.2% on a monthly basis in August, matching the market estimate. In the same period, Industrial Production and Manufacturing Production increased by 0.5% and 1.1%, respectively. Although GBP/USD edged slightly higher on the upbeat data, it remains well below 1.3100 in the European session.
EUR/USD closed flat on Thursday as the USD lost its strength in the second half of the day. The pair struggles to gather recovery momentum and trades in a narrow channel slightly below 1.0950 in the European morning. Germany's Destatis reaffirmed on Friday that the annual CPI rose 1.6% on a yearly basis in September, matching the initial estimate.
USD/CAD extended its uptrend on Thursday and closed the seventh consecutive day in positive territory. Ahead of the Canadian jobs data, the pair trades marginally higher on the day near 1.3750.
USD/JPY closed in the red on Thursday after reversing from the multi-month high it set above 149.60. The pair stays relatively quiet and moves up and down in a tight band below 149.00.
Gold gathered recovery momentum and snapped a six-day losing streak on Thursday. XAU/USD continues to edge higher toward $2,650 on Friday.
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
Last updated
: 2024.10.11
Related articles
AUD/USD ascends on mixed US data, ends week with losses
2024.10.12 07:28USD/JPY Price Forecast: Consolidates within the 148.00-149.50 range
2024.10.12 06:13Canadian Dollar sheds weight for eighth straight day
2024.10.12 05:51Mexican Peso rallies as Fed rate cut bets weaken the US Dollar
2024.10.12 03:09US: The outlook is improving, but some risks remain - National Bank of Canada
2024.10.12 00:59EUR/GBP slides lower as analysts bet on ECB easing, UK data beats expectations
2024.10.11 23:55
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
AUD/USD ascends on mixed US data, ends week with losses
The Australian Dollar recovered some ground against the Greenback on Friday after a measure of prices paid by producers reaffirmed that inflation is coming down, warranting further easing by the Federal Reserve.
New
2024.10.12 07:28USD/JPY Price Forecast: Consolidates within the 148.00-149.50 range
The USD/JPY edged higher during the North American session as US Treasury yields remained higher, particularly the 10-year T-note, which was up close to four basis points at 4.104%.
New
2024.10.12 06:13Canadian Dollar sheds weight for eighth straight day
The Canadian Dollar (CAD) fell against the Greenback for an eighth consecutive trading day as markets pivot out of the Loonie in favor of the US Dollar.
New
2024.10.12 05:51Gold surges on mixed US data, increased Fed rate cut speculation
Gold rallied over 1% on Friday, with the yellow metal set to end the week with modest gains of 0.20% after inflation data revealed on Friday and the Consumer Price Index (CPI) report on Thursday capped the Greenback's advance.
New
2024.10.12 05:09Mexican Peso rallies as Fed rate cut bets weaken the US Dollar
The Mexican Peso registers gains against the Greenback for the second consecutive day after hitting a low of 19.61 in early trading on Thursday.
New
2024.10.12 03:09Dow Jones Industrial Average hits fresh record high after slack PPI print
The Dow Jones Industrial Average (DJIA) rose over 400 points bottom-to-top on Friday, bolstered into a fresh record high of 42,837 after US Producer Price Index (PPI) inflation figures cooled in September.
New
2024.10.12 02:38US: The outlook is improving, but some risks remain - National Bank of Canada
Recent weeks have been punctuated by a number of positive developments for the U.S.
New
2024.10.12 00:59Mid-east conflict and OPEC+ restraint hopes preventing a sharp oil correction - TDS
Notwithstanding concerns surrounding a wider Middle East war, which could disrupt oil flows from the region, China stimulus disappointment and OPEC+ producer plans to bring barrels back in the coming months have put the crude oil market at risk of a sharp correction.
New
2024.10.12 00:21EUR/GBP slides lower as analysts bet on ECB easing, UK data beats expectations
EUR/GBP edges lower on Friday as traders sell the Euro (EUR) due to the increasing likelihood of the European Central Bank (ECB) making more aggressive interest rate cuts in the future.
New
2024.10.11 23:55GBP/USD Price Forecast: Bounces from weekly lows as 'hammer' hints reversal
The Pound Sterling recovers some ground against the greenback as a 'hammer' emerges on the daily chart and rises above 1.3050, registering gains of over 0.15%.
New
2024.10.11 23:39Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
