Forex Today: US inflation reinvigorated the Dollar
|As US inflation continued to run hot in January, investors now started to price in a probable interest rate cut by the Federal Reserve in June, while the Greenback navigates yearly highs and US yields trade in multi-week tops across the curve.
Here is what you need to know on Wednesday, February 14:
The USD Index (DXY) approached the key 105.00 barrier amidst higher yields and speculation of a June rate cut. On February 14, inflation will remain at centre stage with the release of Producer Prices, while FOMC’s Goolsbee and Barr are also expected to peak.
EUR/USD challenged the 1.0700 key support amidst the stronger Dollar and ahead of the release of another revision of Q4 GDP Growth Rate and Industrial Production readings in the euro bloc on February 14.
GBP/USD flirted with the key 200-day SMA near 1.2560 amidst the generalized sour sentiment in the risk-associated complex. All the attention in the UK will be on the publication of the January Inflation Rate on Wednesday.
USD/JPY climbed to fresh YTD highs near the 151.00 yardstick amidst the strong bounce in the Greenback and rising US yields. There will be no data releases in the Japanese docket on February 14.
Further weakness saw AUD/USD drop well south of 0.6500 the figure and print new three-month lows against the backdrop of persistent buying pressure in the US Dollar.
Markets will remain close in China amidst the New Year celebrations.
Prices of WTI advanced for the 7th consecutive session and surpassed the $78.00 mark per barrel, always underpinned by geopolitical jitters, the tight supply narrative, and the upbeat monthly report from OPEC.
Gold prices succumbed to the renewed strength in the Dollar and higher US yields, breaching the key contention zone at $2,000 per troy ounce. Silver followed suit and poked at yearly lows around the $22.00 zone per ounce.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.