Here's what you need to know for Thursday, February 13th:
The US Dollar (USD) is struggling to find demand early on Thursday after failing to capitalize its January inflation data on Wednesday. The European Economic Calendar presents industrial production data for December. Later that day, January producer price index (PPI) data from the United States has been closely monitored by market participants, and new headlines await the company's trade policy.
This week's US Dollar Price
The table below shows the rate of change in the US dollar (USD) against listed currencies this week. The US dollar was the weakest against the euro.
| USD | EUR | GBP | JPY | CAD | aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.01% | -0.90% | 1.79% | -0.21% | -0.24% | 0.12% | 0.20% | |
| EUR | 1.01% | 0.18% | 2.96% | 0.92% | 0.77% | 1.23% | 1.29% | |
| GBP | 0.90% | -0.18% | 2.62% | 0.71% | 0.59% | 1.05% | 1.11% | |
| JPY | -1.79% | -2.96% | -2.62% | -2.02% | -1.93% | -1.65% | -1.56% | |
| CAD | 0.21% | -0.92% | -0.71% | 2.02% | 0.01% | 0.30% | 0.37% | |
| aud | 0.24% | -0.77% | -0.59% | 1.93% | -0.01% | 0.45% | 0.52% | |
| NZD | -0.12% | -1.23% | -1.05% | 1.65% | -0.30% | -0.45% | 0.06% | |
| CHF | -0.20% | -1.29% | -1.11% | 1.56% | -0.37% | -0.52% | -0.06% |
The heatmap shows the rate of change of each other's major currencies. The base currency is selected from the left column, and the estimated currency is selected from the top row. For example, if you select US dollars from the left column and move along the horizon to Japanese Yen, the rate of change shown in the box represents USD (base)/JPY (QUOTE).
The U.S. Bureau of Labor Statistics announced on Wednesday that the annual consumer price index (CPI) would rise by 3% in January, surpassing the market forecast and the December 2.9% increase. Meanwhile, the core CPI rose 0.4% per month, following a 0.2% increase recorded in the previous month. In a near-term response, the US dollar has garnered strength against its rivals. However, the mood of risk improved, and USD lost its footing later in the US session.
President Trump said he had received a “long and extremely productive” call with Russian President Vladimir Putin to begin negotiations to end the war in Ukraine. In the meantime, Trump refrained from announcing mutual tariffs. According to CNBC, Trump was still able to reveal his mutual tariff plans before meeting with Indian Prime Minister Narendra Modi on Thursday. After a slight drop on Wednesday, the USD index continued to fall, last seen at close to 107.50.
The UK's National Statistics Office reported on Thursday that Gross Domestic Product (GDP) had grown at an annual rate of 1.4% in the fourth quarter. This reading has come to surpass the market expectations for a 1.1% expansion. GBP/USD is gathering bullish momentum following bright data and trading of over 1.2500.
Minutes of the Bank of Canada (BOC) meeting showed late Wednesday that imminent trade tariffs from the US (US) have become a significant risk of policy guidance in the future. “The BOC Governance Council felt that retaliation measures by Canada and other countries would put up an upward pressure on inflation,” the document read. USD/CAD It will remain under Bearish Pressure and trade at its lowest level since mid-December, near 1.4250 on an early Wednesday of 1.4250.
After an immediate response to US inflation data fell to 1.0300 on Wednesday, EUR/USD He regained that traction and made the day a little higher. The pair keeps pushing towards 1.0450 to start the European session.
USD/jpy It attracted bullish momentum on Wednesday, earning more than 1% each day, backed by rising US yields. The pair will make a downward revision towards 154.00 early on Thursday.
gold It fell to $2,860 in early American sessions on Wednesday, but managed to eliminate daily losses. Xau/USD will retain its position on Thursday, rising to $2,920.
Risks of sentiment FAQ
In the world of financial jargon, two widely used terms, “risk-on” and “risk-off”' refer to the level of risk that investors are willing to anger their stomachs during the reference period. In the “risk-on” market, investors are optimistic about the future and are willing to buy more risky assets. In the “risk-off” market, investors start to “play safely” as they worry about the future.
Typically, during a period of “risk-on”, the stock market will rise, and most commodities (except gold) will also be of value as they benefit from positive growth prospects. The country's currency, which is a heavy commodity exporter, is strengthened by increasing demand, leading to cryptocurrencies rising. In the “risk-off” market, bonds rise. The government's major bonds – gold in particular shines, and safe stock currencies such as the Japanese yen, Swiss franc and the US dollar all make profits.
Minor FX, such as Australian Dollar (aud), Canadian Dollar (CAD), New Zealand Dollar (NZD), minor FX, ruble (friction) and South African Rand (Saar) are all “risk-” in the market It tends to rise. “Above.” This is because the economy of these currencies is heavily dependent on goods exports for growth, and goods tend to rise during the risk-on period. This is because investors are able to use the economy. This is to predict greater demand for future raw materials through strengthening activities.
The major currencies that tend to rise during the “risk-off” period are the US dollar (USD), Japanese yen (JPY), and Swiss franc (CHF). It is the world's reserve currency, and because investors buy US government debt during times of crisis, the US dollar is considered safe because the world's largest economy is unlikely to default. This is because the yen, which is due to the increased demand for Japanese government bonds, is held at a high percentage by domestic investors who are unlikely to throw them away even when they are at stake. The Swiss franc is because investors are strengthening capital protections due to strict Swiss banking laws.
