|

Forex Today: Further US inflation gauges should rule the sentiment

The US Dollar succumbed to the late selling pressure and faded the post-CPI move to weekly highs, while investors kept digesting Powell’s testimonies and sticky consumer prices in January.

Here is what you need to know on Thursday, February 13:

The US Dollar Index (DXY) added to Tuesday’s decline and broke below the 108.00 support despite the intense move higher in US yields across the curve. The usual weekly Initial Jobless Claims wil be published along with Producer Prices.

EUR/USD reclaimed the 1.0400 zone and beyond to print fresh weekly highs back by the late pullback in the US Dollar. Germany’s final Inflation Rate will be released on February 13, along with the Industrial Production in the euro area and the speech by the ECB’s Cipollone.

GBP/USD maintained its constructive bias and rose well north of 1.2400 the figure. Interesting docket in the UK will feature the RICS House Price Balance, along with the preliminary Q4 GDP Growth Rate, Business Investment, Goods Trade Balance, Industrial and Manufacturing Production, Construction Output, and the NIESR Monthly GDP Tracker.

USD/JPY rose markedly to multi-day highs north of the 154.00 hurdle on the back of higher US and Japanese yields. The Producer Prices are expected in Japan.

AUD/USD reversed two daily advances in a row, although it remained close to the key resistance area around 0.6300.

Prices of WTI tumbled to new lows near the $71.00 mark per barrel following the cautious stance by the Fed and larger-than-expected US crude oil inventories.

Prices of Gold regained traction and revisited the $2,900 region per ounce troy following an early drop to the vicinity of $2,860. Silver prices rallied to two-day highs past the $32.00 mark per ounce.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading 

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.