Ella 
Here’s what you need to know on Wednesday, September 13:
Caution prevailed in the market, with traders tending to remain on the sidelines ahead of the release of important U.S. consumer price index (CPI) inflation data. The high-profile data release will likely influence the U.S. Federal Reserve’s interest rate outlook and set the tone for markets ahead of the Fed’s policy announcement next week.
Rising oil prices coupled with renewed hawkish expectations from the European Central Bank (ECB) and Bank of Japan (BOJ) have unsettled investors as they avoid making new bets. Citing sources, Reuters reported on Wednesday that the European Central Bank’s quarterly forecast would put inflation at 3.0% in 2024. At the same time, there are rumors that the Bank of Japan may end its negative interest rate policy in January 2024.
As of press time, the U.S. S&P 500 Index futures fell 0.11% on the day, reflecting the market’s risk aversion.
Across currency markets, the dollar recovered from previous losses, benefiting from risk aversion and a fresh rise in U.S. Treasury yields.
USD/JPY consolidated gains above 147.00, hitting a one-week high of 147.45 in early Asian trade following the Bank of Japan’s Japanese government bond (JGB) purchases.
EUR/USD reversed course and rebounded as investors began taking profits ahead of US CPI data.
GBP/USD fell further towards 1.2400 after the UK economy shrank more than expected in July. The Office for National Statistics (ONS) said gross domestic product shrank by 0.5% in July from June, below expectations for a 0.2% contraction.
AUD/USD is under heavy selling pressure around 0.6400, while USD/CAD is back to 1.3600, unfazed by the continued surge in oil prices. WTI is consolidating near a ten-month high of $88.74.
Gold prices are hovering at a three-week low of $1,907 on Wednesday after breaking out of their recent trading range to the downside.
