Here’s a look at the key points for Thursday, June 11th.
Following a volatile day on Wednesday, major currency pairs held steady during European trading on Thursday. Attention is now turning to the European Central Bank (ECB)’s monetary policy announcements and the latest U.S. producer inflation figures, which are expected to capture the interest of traders.
On Wednesday, U.S. data revealed that the annual inflation rate, gauged by the consumer price index (CPI), climbed to 4.2% in May, marking the highest level in three years. In terms of month-to-month changes, the core CPI—excluding the often fluctuating food and energy prices—saw a rise of 0.2%. This increase was slower than the 0.4% recorded in April and well under the 0.3% that analysts had anticipated. The U.S. dollar index initially dipped slightly after the inflation report but bounced back in subsequent trading as investors flocked to safe-haven assets. While major stock markets in the U.S. faced sharp declines on Wednesday, the U.S. dollar index ended with a modest increase, finishing above the 100.00 mark.
Meanwhile, tensions in the Middle East remain heightened. The U.S. military has reported launching strikes on various targets within Iran, citing these actions as “self-defense,” especially after President Trump remarked that Tehran was not moving quickly enough towards a resolution. Conversely, Iran’s Islamic Revolutionary Guards Corps (IRGC) retaliated by targeting American troops at military bases in Kuwait, Bahrain, and Jordan. Reports suggest that Iranian officials had requested Trump to cease the attacks.
Oil prices were recovering after an initial drop early Thursday. A barrel of West Texas Intermediate, which had surged over 3% on Wednesday, is now trading around $88, reflecting a decline of approximately 2.5% for the day. On a brighter note, U.S. stock futures are up by about 0.6%-1%, while the U.S. dollar index has dipped slightly, hovering just beneath the 100.00 level.
The ECB is poised to increase its key interest rate by 25 basis points following its policy meeting. Market watchers will closely analyze the updated macroeconomic projections and comments from ECB President Christine Lagarde. As of Thursday morning in Europe, the euro/USD pair is relatively stable around 1.1500.
The Bank of Canada (BoC) decided to maintain its policy rate at 2.25% on Wednesday, aligning with expectations. The accompanying statement from Governor Tiff Macklem emphasized a cautious stance, balancing ongoing inflation risks against an economy that still faces oversupply issues. Following a nearly unchanged close on Wednesday, the USD/CAD pair ticked up on Thursday, trading above 1.3950.
Regarding the USD/JPY pair, it saw a slight uptick on Wednesday, continuing to rise and reaching approximately 160.60—the highest since Japan intervened in the forex market on April 30. It remained rather steady on Thursday morning in Europe, trading sideways around 160.50.
The GBP/USD pair showed itself trapped in a tight range beneath 1.3400 during early European trading.
Gold experienced a drop of over 4% on Wednesday, with losses extending into the early Asian session. After hitting its lowest point since November 2025 at just below $4,030, it has managed to recover and is now trading around $4,100.
