Forex Today: Investors ignore Middle East tensions, shift focus to ECB rate decision
Here is what you need to know on Thursday, June 11:
Major currency pairs hold steady in the European session on Thursday following Wednesday's volatile action. In the second half of the day, the European Central Bank's (ECB) monetary policy decisions and producer inflation data from the United States (US) will be watched closely by market participants.
On Wednesday, the data from the US showed that annual inflation, as measured by the change in the Consumer Price Index (CPI), climbed to its highest level in three years at 4.2% in May. On a monthly basis, the core CPI, which excludes volatile food and energy prices, rose by 0.2%, at a slower pace than the 0.4% increase recorded in April and the market expectation of 0.3%. Although the US Dollar (USD) Index edged lower with the immediate reaction to May inflation data, it benefited from safe-haven flows and regained its traction in the American session. Wall Street's main indexes registered large losses on Wednesday and the USD Index closed the day with small gains above 100.00.
Meanwhile, tensions in the Midde East remain high as the US and Iran continue to exchange fires. After US President Donald Trump said that Tehran is taking too long to make a deal, the US military announced that it launched attacks "against multiple targets in Iran" and described them as "self-defense." In response, Iran’s Islamic Revolutionary Guards Corps (IRGC) targeted US forces in bases in Kuwait, Bahrain, and Jordan. President Trump also said that Iranian officials asked him to halt the latest attack, per Fox News.
Crude Oil prices correct lower early Thursday. After rising more than 3% on Wednesday, the barrel of West Texas Intermediate trades near $88, losing about 2.5% on a daily basis. In the meantime, US stock index futures rise between 0.6% and 1% and the USD Index trades marginally lower on the day, slightly below 100.00.
The ECB is forecast to raise key rates by 25 basis points after the policy meeting. Revised macroeconomic projections and comments from ECB President Christine Lagarde will be scrutinized by market participants. EUR/USD holds steady at around 1.1500 in the European morning on Thursday.
The Bank of Canada (BoC) left its interest rate unchanged at 2.25%, as anticipated, on Wednesday. The policy statement and comments from BoC Governor Tiff Macklem reinforced a patient approach, noting that policymakers continue to balance lingering inflation risks against an economy that remains in excess supply. After closing virtually unchanged on Wednesday, USD/CAD edges higher and trades above 1.3950 on Thursday.
USD/JPY registered small gains on Wednesday. The pair continued to push higher and reached its strongest level near 160.60 since the Japan intervened in the foreign exchange market on April 30. The pair stays relatively quiet in the European morning and moves sideways near 160.50.
GBP/USD treads water in a narrow band below 1.3400 in the early European session on Thursday.
Gold lost more than 4% on Wednesday and extended its slide in the early Asian session. After touching its lowest level since November 2025 below $4,030, Gold manages to stage a rebound and trades in positive territory near $4,100.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
As chip stocks plummet, "cybersecurity software" surges across the board, CrowdStrike and Palo Alto Networks hit new highs
CrowdStrike surged 13.8% in a single day to a record high, while Palo Alto Networks soared 13%. The software ETF outperformed the semiconductor ETF by more than 10 percentage points in a single day, marking the largest gap in history. Analysts believe that regardless of the pace of AI development, security demand will only continue to rise. Capital is accelerating its rotation from computing hardware to security software, with segments such as identity management and data governance expected to benefit first.
Altman can afford to wait, but Masayoshi Son can't: OpenAI will not go public this year, exposing a $20 billion gap and a credit weakness for SoftBank.
OpenAI has postponed its public listing, putting its largest external shareholder, SoftBank, in a liquidity crisis. This week, SoftBank is conducting a roadshow in New York, seeking to issue $10-20 billion in bonds to repay the $40 billion bridge loan previously borrowed to increase its investment in OpenAI. According to Bloomberg estimates, SoftBank faces a funding gap of at least $20 billion, and the yield on its existing U.S. dollar bonds has already exceeded 8.5%, with pricing approaching junk status.
Meeting postponed, gold price drops rapidly
The "first metaverse stock" bets on "AI-powered game creation"! Roblox (RBLX.US) competes for creator economy dividends, shares surge nearly 13%
On September 11, after Roblox announced new tools for game developers and features for players at its developer conference, the company's stock price rose by more than 12% on Monday.
Crypto prices
More
