American FX Outlook: Factory gate inflation and US regional manufacturing headline

What you need to know before markets open:

The world of money and investment is getting ready for inflation reappearing back on the horizon. The US core inflation rose 1.8% y/y in January giving an initial boost to the US benchmark Treasury yields with US equities falling and the US Dollar rising. The U-turn that followed saw US Dollar falling past key levels against major while stocks recovered.
The US factory gate inflation and regional manufacturing data headline Thursday.
Japan’s parliament is set to announce nominations for the position of next Bank of Japan governor on Friday, February 16, at 2:00 GMT that equals 11:00 Tokyo time.

Thursday’s market moving events

New York Empire State manufacturing index is expected to rise to 17.5 in February.
The US PPI is expected to rise 0.4% m/m while increasing 2.5% y/y in January.
The US weekly jobless claims are expected to rise 230K
Philadelphia Fed index is expected to inch lower to 21.1 in February.
The US industrial production is set to rise 0.2% m/m in January.

Major market movers

The US Dollar is falling for the fourth day in a row, unable to materialize the advance of the US benchmark Treasury yields towards 3% following the inflation surprising on the upside. The stock market U-turn saw US Dollar fall massively across the board.
The Japanese Yen advanced to fresh 15-months high of after the ¥106.25 after the Finance Minister Taro Aso ruled out any kind of FX intervention.

Earlier in Asia/Europe

Australian employment rose 16.0K in January with the unemployment rate steady at 5.5%.
Japanese industrial production rose 2.9% m/m in December.
Spanish inflation fell massive 1.1% m/m in January while increasing 0.6% y/y.
Both ECB executive board member Yves Mersch and ECB chief economist Peter Praet spoke in Paris on Thursday with no market-moving headlines crossing the wires.
The Eurozone trade balance reached an above expectations strong surplus of €23.8billion in December

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