Forex Today: Fears continue to boost the US Dollar

Valeria Bednarik FXStreet

What you need to take care of on Friday, February 17:

US Dollar reached fresh weekly peaks against most major rivals, giving back some ground ahead of the Wall Street close as US indexes bounced from their early lows. The catalyst came from the US Producer Price Index (PPI), up 6% YoY in January, down from 6.5% in December, but above the 5.4% forecast. The figures revived speculation the US Federal Reserve will maintain the pace of tightening for more than anticipated while a pivot in monetary policy moved further away.

Stocks came under intense selling pressure, although Wall Street trimmed most of its intraday losses ahead of the close. US government bond yields, on the other hand, advanced, with the 10-year note now offering 3.83% and the 2-year note paying 4.61%.

The EUR/USD pair trades a handful of pips below 1.0700, while GBP/USD hovers around 1.2010.

European Central Bank Executive Board member Fabio Panetta said raising borrowing costs in small increments would allow a better monetary policy adjustment as previous tightening has started to put a brake on economic activity.

According to the Federal Reserve Bank of Atlanta's GDPNow model, the US economy is expected to grow at an annualized rate of 2.5% in the first quarter, up from 2.4% in the previous estimate.

Bank of Canada Governor Tiff Macklem said he expects CPI inflation to fall to around 3% in the middle of this year and reach the 2% target in 2024. However, he added, "if evidence begins to accumulate to show that inflation is not declining in line with forecast, we are prepared to raise policy rate further." USD/CAD trades at around 1.3420.

AUD/USD battles to regain the 0.6900 threshold after falling to a fresh monthly low on the back of soft Australian employment data and the sour tone of equities.

USD/JPY topped 134.45 with US yields intraday peaks, now down to 133.80.

XAU/USD fell to $1,827.58 a troy ounce, its lowest since early January. It currently hovers at around $1,842, helped by receding risk aversion. Crude oil prices remained stable, with WTI changing hands at $78.45 a barrel.

Bitcoin price could run up to $41,000 over the next month if it follows this pattern

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.