Here is what you need to know on Friday, February 16:
The US Dollar (USD) extended its downward correction following mixed data releases on Thursday, with the USD Index (DXY) losing 0.4% on the day. The USD stays resilient against its rivals early Friday as focus shifts to January Producer Price Index (PPI) data. Later in the American session, the University of Michigan will release the preliminary Consumer Sentiment Index for February.
The US Census Bureau reported on Thursday that Retail Sales declined 0.8% on a monthly basis in January. On a positive note, weekly Initial Jobless Claims came in at 212,000 for the week ending February 10, down from 220,000 in the previous week. The benchmark 10-year US Treasury bond yield retreated toward 4.2% and Wall Street's main indexes registered modest gains after the data, not allowing the USD to gather strength. In the European morning, the 10-year yield stays in positive territory near 4.25% and US stock index futures trade mixed.
Retail Sales in the UK rose 3.4% on a monthly basis in January, the UK's Office for National Statistics announced early Friday. This print surpassed the market expectation for an increase of 1.5% by a wife margin. Retail Sales ex-Fuel grew 3.2% in the same period. Pound Sterling failed to benefit from the upbeat data and GBP/USD was last seen fluctuating at around 1.2600.
Bank of Japan (BoJ) Governor Kazuo Ueda said on Friday that they will examine whether to maintain various easing measures, including negative interest rate, when a sustained and stable achievement of the price target comes into sight. Ueda refrained from commenting on the short-term fluctuations in the forex markets and possible factors behind such moves. After closing the previous two trading days in negative territory, USD/JPY stabilized near 150.00 and edged higher during the Asian trading hours.
Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr repeated early Friday that they have more work to do to get inflation expectations anchored to the 2% target. "Bringing core inflation down to within the 1-2% target band is an important part of bringing overall inflation down to the 2% target," Orr added. NZD/USD largely ignored these comments and was last seen trading marginally lower on the day at around 0.6100.
EUR/USD gathered recovery momentum and climbed above 1.0750 on Thursday. The pair holds steady above this level in the European morning on Friday.
Gold snapped a five-day losing streak on Thursday and closed above the key $2,000 mark. XAU/USD trades in a narrow channel slightly above this level on the last trading day of the week.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.