US dollar is trading near Monday’s starting level.
The US Dollar Index might fall below 104 if PPI confirms additional dropping.
The US Dollar (USD) is telling two stories this week. On the one hand. The recent increase in inflation struck a nerve in markets. Resulting in a strong risk-off reaction on Tuesday.
Markets are favouring risk. Again, forget about Tuesday’s inflation setback.
However, Retail Sales data from Thursday suggest that customer dynamics are shifting, with a significant reduction in numbers, and the lower revision caused traders to dismiss the Tuesday inflation estimate as a one-time occurrence. This positions the US Dollar Index (DXY) With only one trading day left to seek for direction, the market has remained flat at the same level it opened on Monday.
Furthermore On the economic front, the choice on where the US Dollar will go will be based on two significant data points released this Friday: the Producer Price Index elements and the University of Michigan print. These two components will determine the outcome for this week, with broad predictions of further easing in pricing pressure and a weaker US dollar as a result.
Daily Market movers: Last bets for the week.
The main event on Friday is about 13:30 GMT:
This is when the January Producer Price Index report was released:
Monthly Headline PPI is predicted to rise. From -0.2% to 0.1%.
Yearly headline PPI is expected to rise from 1.0% to 0.6%.
Monthly core PPI is predicted to fall from -0.1% to 0.1%.
Yearly Core PPI expected to rise from 1.8% to 1.6%.
Building permits should increase from 1.493 million to 1.5093 million in January.
Housing starts are forecast to stay at 1.46 million houses.
Around 15:00 GMT, the University of Michigan will disclose its preliminary results for February:
Moreover The Consumer Sentiment Index is predicted to increase from 79 to 80.
Inflation expectations were previously set at 2.9%. With no projection in place.
Michael Barr, a US Federal Reserve Board member, is scheduled to talk about 14:10 GMT. Mary Daly from the San Francisco Fed is scheduled to talk about 17:10 GMT.
Furthermore Equities are thrilled. With the backtracking on the forward drive of rate cuts, we’re in the green. European shares are up more than 0.5%. While US equity futures are slightly higher.
The CME Group’s FedWatch Tool is now tracking the March 20th meeting. Moreover Expectations for a pause are 91.5%, while 8.5% expect a rate drop.
The benchmark 10-year US Treasury Note is trading around 4.26%. Close in the middle of this week’s range of 4.33% to 4.18%.
