Watch today: Greek GDP, European inflation

Good Morning,

- The dollar took a breather after yesterday’s rally… The euro edged slightly up to $1.12 level, but remained not far from a one-month low of $1.1184 touched on Thursday.

- Asian shares were mostly lower on Friday as a sharp overnight pullback in crude oil prices dampened risk appetite

- The Dollar index surging to a one-month high on Thursday as U.S. economic data and comments from FED’s officials prompted investors to raise their bets on a rate increase. The index was last eased to 95.130, inching away from a one-month high of 95.357 set on Thursday. The dollar index had rallied 1.1 percent on Thursday, bringing it close to the more than 11-year high of 95.481 hit on Jan. 23.

- San Francisco Fed President John Williams and St. Louis Fed chief James Bullard both suggested on Thursday that the U.S. central bank might end its near zero interest rate policy sooner than some traders expect.

- Data released yesterday showed that the U.S. core consumer price index, which excludes food and energy costs, rose 0.2 percent in January, more than the 0.1 percent increase economists had expected, even as overall CPI fell 0.7 percent because of falling oil prices.

- Also U.S. durable goods orders also rose 2.8 percent in January, though the upbeat readings were tempered by a bigger-than-expected rise in new applications for unemployment benefits.

- In January 2015, French household consumption expenditure on goods continued to increase: +0.6% in volume, after +1.6% in December.

- Credit Agricole on USD: The USD has been in demand on the back of yesterday’s stronger than expected core inflation data. This may be due to the notion that the latest data is making a case for rising domestically driven upside risks to inflation. In terms of data, today’s main focus will be on the second revision to Q4 GDP and the Michigan consumer sentiment survey. However, we anticipate only a limited currency impact, especially ahead of next week’s payrolls data which may support the view of further improving growth prospects. This is especially true, as medium-term inflation expectations have remained well supported, regardless of a further appreciating USD. Accordingly, we are of the view that USD dips should be bought, in particular against the EUR and the JPY.

- Early today, data from Japan showed core consumer prices rose 2.2 percent in January from a year earlier, slightly less than economists' median estimate for a 2.3 percent annual gain. In addition, data showed a larger-than-expected jump in industrial production, but also a rise in the unemployment rate last month, showing the economic recovery continues but not without areas of concern.

- U.S. crude oil posted a rebound and was up again above $49 level a barrel after plunging 5.5 percent the previous day. U.S. crude was still on track for its first monthly rise in eight.

- Watch today: Greek GDP, European inflation, US GDP revision. Economists polled by Reuters expected U.S. growth in the fourth quarter to be revised down to 2.1 percent from a preliminary 2.6 percent.

Have a nice Weekend!