Monday, February 26, 2024

The dollar moved higher as markets were cautious ahead of US inflation data

As expected, the European Central Bank (ECB) announced on Thursday that it would leave official interest rates unchanged after the January monetary policy meeting. During the press conference after the meeting, ECB President Christine Lagarde refrained from commenting on the possible timing of a shift in monetary policy and reiterated that it was premature to talk about a rate cut. she EUR/USD It closed in negative territory on Thursday and continued to advance early on Friday. At the time of writing, the pair is trading below 1.0850.

Dollar Quote this week

The following table shows the percentage change of the United States Dollar (USD) against the major currencies this week.

USD 0.69% 0.10% 0.34% 0.28% -0.21% 0.31% -0.05%
EUR -0.68% -0.58% -0.35% -0.41% -0.90% -0.37% -0.73%
GBP -0.11% 0.57% 0.22% 0.17% -0.32% 0.22% -0.16%
CAD -0.34% 0.37% -0.22% -0.05% -0.54% -0.01% -0.38%
AUD -0.27% 0.43% -0.16% 0.07% -0.47% 0.06% -0.31%
JPY 0.20% 0.88% 0.36% 0.54% 0.45% 0.53% 0.16%
NZD -0.31% 0.37% -0.22% 0.01% -0.07% -0.51% -0.37%
CHF 0.05% 0.74% 0.15% 0.38% 0.31% -0.17% 0.35%

The BEA reported Thursday that the Gross Domestic Product (GDP) grew at an annual rate of 3.3% (first estimate) in the fourth quarter. This number is more than the expectations of the market, which is expected to be 2%. Other US data showed weekly initial jobless claims rose to 214,000, from 189,000 last week, and durable goods orders were unchanged in December. The 10-year US Treasury yield remained comfortably above 4% early Friday and the DXY Dollar Index remains in positive territory above 103.50. Reflecting risk aversion in markets, US stock index futures lost between 0.4% and 0.8% in the morning in Europe.

GBP/USD recorded a small loss on Thursday and fell early on Friday. The pair, however, remains relatively stable around 1.2700.

Data from Japan shows that the The Tokyo Consumer Price Index (CPI) rose 1.6% year-on-year in January, compared to 2.4% in December. Meanwhile, the Bank of Japan said in the monetary policy meeting minutes that the members agreed to that must patiently maintain a flexible policy. The pair USD/JPY rose early on Friday and is now trading slightly below 148.00.

The price of Gold benefited from the decline in US bond yields and closed Friday moderately. XAU/USD struggled to find direction in the morning in Europe and continued to move sideways around $2,020.

World Nation News Desk
World Nation News Desk
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