USD Slips as Euro and Pound Extend Gains
The euro remains steady ahead of key ECB policy decisions, while investors monitor US jobless claims and productivity data. Oil prices struggle after another decline, while gold and silver retreat slightly from recent highs.
Key Data Out Today
- Eurozone: Retail sales figures for January will provide insight into consumer strength.
- US: Initial jobless claims and nonfarm productivity reports are due later today.
- ECB: Interest rate decisions and President Lagarde’s speech will be in focus.
- Canada: Ivey PMI data may influence CAD movements.
Commodities
- Oil: WTI crude is down 0.24% at $66.46, and Brent crude is at $69.39, pressured by global demand concerns.
- Gold: Slips 0.50% to $2,903 per ounce as risk appetite stabilizes.
- Silver: Trades 0.41% lower at $32.49 but remains up 12.56% YTD.
Currency Movements
EUR/USD (1.0810, ↑ 0.20%)
The euro continues its upward trend, gaining over 4% monthly, as markets anticipate the ECB rate decision and Lagarde’s speech for further direction.
GBP/USD (1.2908, ↑ 0.11%)
The pound maintains its strength, supported by hawkish BoE expectations and strong UK economic data, with traders watching BoE’s Mann speech for further guidance.
AUD/USD (0.6340, ↑ 0.07%)
The Australian dollar holds steady, buoyed by improving risk sentiment and a weaker US dollar, though RBA policy expectations remain mixed.
NZD/USD (0.5739, ↑ 0.48%)
The New Zealand dollar extends its rebound, up 1.86% on the week, as traders assess commodity price trends and China’s economic outlook.
USD/JPY (148.22, ↓ 0.45%)
The yen strengthens as US Treasury yields ease, with recent declines in the pair signaling potential further downside if risk sentiment shifts.
USD/CNY (7.2426, ↑ 0.09%)
The Chinese yuan remains under pressure despite a modest recovery, with focus on Beijing’s policy response to economic challenges.
USD/CHF (0.8878, ↓ 0.36%)
The Swiss franc gains against the dollar as safe-haven demand increases, helped by recent global growth concerns and subdued US data expectations.
USD/CAD (1.4349, ↑ 0.08%)
The Canadian dollar stabilizes, supported by oil price movements and anticipation of the Ivey PMI report, which could provide further direction.
USD/MXN (20.42, ↑ 0.08%)
The Mexican peso remains relatively stable, reflecting strong capital inflows and ongoing carry trade appeal, despite fluctuations in risk appetite.
USD/INR (87.06, ↑ 0.24%)
The Indian rupee weakens slightly amid higher crude oil prices and persistent foreign outflows, though RBI intervention could limit volatility.
Market Outlook
Markets will closely watch the ECB’s monetary policy statement and President Lagarde’s speech for clues on the euro’s direction. US jobless claims and productivity data could influence Fed rate expectations. Oil remains under pressure, while gold’s next move depends on market sentiment and the US dollar’s trajectory.