Forex Today: US Dollar on the back foot following CPI-inspired selloff

Here is what you need to know on Thursday, April 13:

The US Dollar is having a difficult time finding demand early Thursday after having suffered heavy losses against its major rivals on soft inflation figures on Wednesday. Eurostat will release Industrial Production data for February and the US economic docket will feature the US Department of Labor's weekly Initial Jobless Claims and the Producer Price Index figures for March.

The annual Consumer Price Index (CPI) in the US declined to 5% in March from 6% in February, compared to the market expectation of 5.2%. With the initial reaction, the 10-year US Treasury bond yield fell sharply and the US Dollar Index (DXY) broke below 102.00. The DXY stays below 101.50 early Thursday and the 10-year US T-bond yield seems to have stabilized at around 3.4%. Following Wednesday's choppy action in Wall Street, US stock index futures trade modestly higher in the European session.

The data from China showed on Thursday that the trade surplus narrowed to $89.19 billion in March from $116.8 billion in February. This reading came in much better than the market expectation for a surplus of $39.2 billion.

EUR/USD registered impressive gains on Wednesday and continued to stretch higher early Thursday. The pair was last seen trading at its highest level since early February, a few pips above 1.1000.

GBP/USD preserves its bullish momentum and trades above 1.2500. The pair stays within a touching distance of the multi-month top it set at 1.2527 on April 4.

The Australian Bureau of Statistics reported early Thursday that the Unemployment Rate remained unchanged at 3.5% in March with an Employment Change of +53K. Supported by the upbeat jobs report and trade figures from China, AUD/USD gathered bullish momentum and was last seen rising more than 0.5% on the day at around 0.6730.

The Bank of Canada (BoC) left its policy rate unchanged at 4.5% following its April meeting as expected. In the policy statement, the BoC reiterated that the Governing Council will continue to assess whether monetary policy is sufficiently restrictive, adding that they remain prepared to raise rates if needed. USD/CAD closed the third straight day in negative territory and continued to push lower on Thursday. The pair was last seen trading at its lowest level in over a month at around 1.3400.

Gold price surged higher with the immediate reaction to US inflation data on Wednesday but erased a large portion of its daily gains amid recovering US yields. XAU/USD seems to have regained its traction early Thursday and it was last seen trading in positive territory above $2,020.

Bitcoin registered small losses on Wednesday before stabilizing near $30,000 on Thursday. Ethereum gained more than 1% on Wednesday and edged slightly higher early Thursday. At the time of press, ETH/USD was up marginally on the day at $1,930.