U.S Dollar Gains as Markets Eye Jobless Claims & Retail Sales
Markets are subdued today as key data releases and commodity prices fluctuate. The spotlight remains on U.S. initial jobless claims and Canadian retail sales, while the U.S Dollar holds its strength against most major currencies.
Key Data Out Today
- U.S. Initial Jobless Claims (Jan 17): Expected to increase slightly to 220K from 217K, reflecting stability in the U.S. labor market.
- Canada Retail Sales (November): Expected to grow modestly at 0.2%, with retail sales ex-autos forecast at 0.1%. This will provide insights into consumer spending trends.
- Eurozone Consumer Confidence (January): Forecasted at -14.2, highlighting persistent concerns about economic recovery across Europe.
- Australian PMIs (January): The Judo Bank Manufacturing and Services PMIs, due later today, will provide early indicators of economic activity in Australia.
Commodities
- Gold: Trading at $2,752.42 per troy ounce, gold is down 0.10% today but up 5.25% over the past month. Its year-to-date gain of 4.88% reflects continued safe-haven demand amid market uncertainties.
- Silver: Silver is trading at $30.573 per troy ounce, falling 0.64% today and 0.60% for the week. However, it remains up 3.09% for the month and 5.86% year-to-date.
Currency Movements
EUR/USD
- EUR/USD: The euro fell 0.13% today to 1.03959. Despite a 0.91% weekly rise, the pair is facing resistance amid U.S Dollar strength and subdued Eurozone growth prospects.
GBP/USD
- GBP/USD: The pound trades at 1.23009, down 0.10% today. Lingering concerns from weaker UK employment data earlier this week have weighed on sentiment.
AUD/USD
- AUD/USD: The Australian Dollar dropped 0.10% to 0.62670. Mixed commodity prices and a cautious risk environment continue to impact the currency.
NZD/USD
- NZD/USD: The New Zealand Dollar is trading at 0.56617, down 0.10%. Similar to the AUD, it has shown resilience over the past week but struggles to gain momentum against the U.S Dollar.
USD/JPY
- USD/JPY: The U.S. Dollar rose 0.09% to 156.642 against the yen, with a year-to-date gain of 6.18%, reflecting continued demand for the greenback in risk-off markets.
USD/CNY
- USD/CNY: The dollar strengthened 0.11% against the yuan to 7.28954 as geopolitical and economic uncertainties support safe-haven flows.
USD/CHF
- USD/CHF: The U.S Dollar gained 0.02% to 0.90719, maintaining a steady position against the Swiss Franc as markets balance risk and safety.
USD/CAD
- USD/CAD: The U.S Dollar rose slightly by 0.08% to 1.43896. Markets await Canadian retail sales data for further direction.
USD/MXN
- USD/MXN: The dollar fell 0.04% to 20.4909, showing the peso’s strength this week with a 1.68% weekly gain.
USD/INR
- USD/INR: Trading flat at 86.4750, the Indian Rupee has shown stability against the U.S. Dollar despite global economic pressures.
Market Outlook
- Economic Data: Markets will focus on U.S. jobless claims and Canadian retail sales data for insights into consumer and labor market strength. Australian PMIs will be key for gauging regional economic trends.
- Currencies: The U.S. Dollar is expected to maintain its strength as geopolitical uncertainties persist and markets favor safe-haven assets. Emerging markets currencies, like the Mexican Peso, may see short-term gains amid investor interest in higher-yielding assets.
- Commodities: Gold and silver remain supported by safe-haven flows, although price corrections are possible as data releases influence sentiment. Crude oil markets remain pressured by weak demand outlooks, despite supply-side factors lending support earlier this month.