Key inflation data could prompt significant market reactions as the US Dollar weakened during Wednesday’s American trading hours, with US Treasury bond yields also declining. Early Thursday, the focus shifted to the Personal Consumption Expenditures (PCE) Price Index, a key measure of inflation favored by the Federal Reserve. Additionally, preliminary February Consumer Price Index (CPI) data from Germany and fourth-quarter Gross Domestic Product (GDP) readings from Canada are closely watched by investors.
The benchmark 10-year US Treasury bond yield fluctuated between 4.25% and 4.3% in the European morning after a nearly 1% drop. Meanwhile, US stock index futures traded flat following a modest decline in Wall Street’s main indexes on Wednesday. The US economic docket also includes Weekly Initial Jobless Claims, Pending Home Sales, and Personal Income and Spending data for January, along with speeches from several Fed policymakers later in the day.
US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Japanese Yen.
USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
USD | -0.17% | 0.05% | 0.47% | 0.72% | -0.58% | 1.35% | -0.31% | |
EUR | 0.17% | 0.21% | 0.64% | 0.89% | -0.40% | 1.53% | -0.15% | |
GBP | -0.04% | -0.21% | 0.43% | 0.68% | -0.60% | 1.32% | -0.35% | |
CAD | -0.48% | -0.65% | -0.44% | 0.26% | -1.06% | 0.89% | -0.80% | |
AUD | -0.74% | -0.90% | -0.69% | -0.24% | -1.29% | 0.64% | -1.04% | |
JPY | 0.56% | 0.39% | 0.64% | 1.05% | 1.31% | 1.90% | 0.24% | |
NZD | -1.38% | -1.55% | -1.33% | -0.90% | -0.65% | -1.96% | -1.70% | |
CHF | 0.32% | 0.15% | 0.35% | 0.79% | 1.05% | -0.26% | 1.67% |
In the Asian session on Thursday, the USD/JPY pair faced strong bearish pressure, slipping below 150.00 for the first time in over a week. Bank of Japan (BoJ) board member Hajime Takata highlighted rising momentum in spring wage talks and the need for a flexible response to policy outlook.
Australian Retail Sales rose by 1.1% in January, offsetting a decline in December, leading to a rebound in AUD/USD after Wednesday’s losses. Meanwhile, the Canadian economy is expected to grow by 0.8% in the fourth quarter, with USD/CAD correcting lower after touching a mid-December high. EUR/USD traded in a tight range below 1.0850 early Thursday, with German Retail Sales declining in January. GBP/USD remained in consolidation below 1.2700, while Gold benefited from lower US yields, trading near $2,040.