Forex Today: Inflation keeps heating up

What you need to take care of on Thursday, April 14:

Inflation, central banks and the Eastern European crisis remained in the eye of the storm and weighed on the market’s mood. The UK published the March Consumer Price Index, which jumped to a three-decade high of 7%, while the US reported that the March Consumer Price Index jumped to 11.2% YoY, both above anticipated.

The Bank of Canada increased benchmark interest rates by 50 bps to 1.00% and also announced plans to begin reducing the size of its balance sheet, starting April 25, given that it sees an increasing risk that expectations of elevated inflation could become entrenched.

Earlier in the day, the Reserve Bank of New Zealand decided to lift the official cash rate by 50 bps to 1.5% to combat inflationary headwinds pertaining to the Omricon disruptions and the Ukraine crisis.

On Thursday, it will be the turn of the European Central Bank to announce its monetary policy decision.

German government rejected the EU ban on Russian oil for now, while Moscow declared that US and NATO vehicles delivering weapons on Ukrainian soil would be considered legitimate military targets.

Wall Street shrugged off negative headlines and closed with substantial gains. Government bond yields, on the other hand, suffered a sharp U-turn during the American session, edging sharply lower and weighing on the greenback.

The EUR/USD pair trades at around 1.0880, while GBP/USD is just above the 1.3100 figure. The AUD/USD pair finished the day unchanged in the 0.7440 price zone, while USD/CAD ended the day in the red at 1.2565. The USD/JPY pair reached a fresh multi-year high of 126.31.

Spot gold maintains its bullish bias, trading near a fresh multi-week high of $1,981.57 a troy ounce. A generalized risk-averse mood alongside the dollar’s weakness during the American session maintained the metal bid throughout the day. Crude oil prices kept soaring, with WTI setting above $103.0 a barrel.

Bitcoin price rebounds after Terra’s LUNA Foundation Guard buys over $100 million in BTC