On Friday, the US dollar (USD) remained stable following the release of important economic data, while the US dollar index (DXY) noted a respectable weekly increase of nearly 1%. Core personal consumption expenditures (PCE) showed a year-on-year rise of 3% in December, which exceeded market predictions. This suggested inflationary pressures are climbing, providing a boost to the dollar. In another update, the preliminary gross domestic product (GDP) for the US fourth quarter dropped to 1.4%, significantly lower than the anticipated 3%, diminishing interest in the greenback among investors.
The US dollar index (DXY) is currently around the 97.80 mark, facing challenges in drawing buyers due to the underwhelming GDP figures. Upcoming on Monday, the US will report on factory orders for December. Then, Tuesday will bring the ADP employment change four-week average, the December home price index, and February’s consumer confidence report. On Thursday, the focus will be on new jobless claims from the US conference, capped by the release of the Chicago Purchasing Managers Index (PMI).
EUR/USD is nearing the 1.1780 level, experiencing a decline after the US Supreme Court decided against President Donald Trump’s tariffs. On Monday, Germany’s IFO report and Italy’s January CPI will be published. Midweek on Wednesday, attention will shift to German GDP along with the March GfK consumer confidence survey. Thursday will see releases regarding Eurozone business confidence and consumer sentiment for February, followed by Germany’s unemployment rate and Spain’s February Harmonized Index of Consumer Prices (HICP) on Friday.
GBP/USD has been maintaining around the 1.3490 range, showing little movement this week, as recent UK employment and inflation reports bolster expectations of a rate cut from the Bank of England (BOE) next month.
AUD/USD is hovering close to 0.7080, fluctuating throughout the day but still trending upwards as US trading winds down. On Thursday, Australia is set to announce private capital spending figures.
USD/JPY is trading around 155.10, largely consolidating earlier gains following disappointing US economic data. Japan will release significant retail sales and trading data for January on Thursday.
USD/CAD remains around 1.3690, showing little change after Canadian retail sales dipped by 0.4% month-on-month in December. This wasn’t as drastic as the expected 0.5% decline and marked a turnaround from a 1.2% rise in November. Thursday will feature the current account report from Canada.
Gold is currently priced at $5,077, regaining most of its losses from the week amid rising market uncertainty.
Looking Ahead: Economic Voices
Monday, February 23rd:
- BOE representative Taylor.
- Mr. Waller from the Fed.
- Mr. Lagarde of the ECB.
Tuesday, February 24th:
- Fed’s Goolsby.
- Fed’s Bostic.
- Mr. Collins from the Fed.
- Fed chairman.
- Mr. Barkin of the Fed.
Wednesday, February 25th:
- US President Donald Trump.
- RBA’s Block Governor.
- Mr. Schmidt from the Federal Reserve.
- Musallem from the Fed.
Thursday, February 26th:
- Mr. Lagarde from the ECB.
- Mr. Lombardelli of the BOE.
- Mr. Bowman from the Federal Reserve.
Friday, February 27th:
- BOE’s Pill.
- Mr. Kocher from the ECB.
Upcoming Central Bank Meetings and Data Releases
Sunday, February 22nd:
Wednesday, February 25th:
Thursday, February 26th:
Friday, February 27th:
- Swiss GDP (4th quarter).
- February CPI for Germany.
- German February flash HICP.
- Canadian GDP (4th quarter).
- US Producer Price Index (PPI).
