News

Dollar Extends Falls

USD

On Thursday, the Greenback declined dramatically vs. a basket of major currencies and touching a 15-month low vs. the yen after the U.S. Labor Department said its CPI increased 0.5% in January. The U.S. dollar declined as increasing inflation could be a catalyst to push the U.S. Federal Reserve toward hiking interest rates at a faster pace than currently anticipated.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.39% at 88.56, it’s lowest level since February 2.

EUR

The common currency traded higher, with EUR/USD rising 0.24% to $1.2492 after climbing 0.94% in the previous session. No Major reports are due from the Euro-zone today.

GBP

Against the GBP, the USD fell by 0.41%, to settle at $1.4055, after ending the previous session up 0.89%.

JPY

The JPY rose by 0.50% vs. the USD to settle at ¥106.47. On the release front, traders are awaiting Japan Buying Foreign Bonds (Yen) (9 FEB).

Gold

Gold prices rose fell by 0.02%, after touching a two-and-a-half week highs in the previous session, as traders bought the precious metal as a hedge against inflation after the U.S. Labor Department said its CPI increased 0.5% in January. Gold Futures - Apr 18 (GCJ8), fell by 0.02%, to settle at $1,357.70.

Oil

Earlier today, Oil prices edged higher by 1%, extending gains from the previous session, as Saudi Arabia, the world’s largest oil exporter and OPEC’s most influential member, could cut additional 100k bpd of its oil production and keep its exports below 7 million bpd in March.

Crude Oil WTI Futures - Mar 18 (CLH8) rose as much as 0.12%, to settle at $61.28, and Brent Oil Futures - Apr 18 (LCOJ8) was up by 0.61% at $64.75.

The most important economic events:

  • USD Philadelphia Fed Business Outlook (FEB): (GMT 13:30) – Medium – Forecast (21.6) – Previous (22.2).
  • USD Industrial Production (MoM) (JAN): (GMT 14:15) – Medium – Forecast (0.2%) – Previous (0. 9).
  • USD NAHB Housing Market Index (FEB): (GMT 15:00) – Medium – Forecast (72) – Previous (72).

Disclaimer
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