Forex Update: Slow Start to the Week Ahead of Key Data Releases

Here’s what you should know on Monday, February 12:

Currency markets are off to a quiet start as the new week begins, following last week’s mixed movements. The US Dollar (USD) Index is holding steady around the 104.00 level during the early European session, mirroring its nearly unchanged close on Friday. The economic calendar lacks major data releases today, but investors will be paying attention to speeches from several Federal Reserve policymakers and Bank of England Governor Andrew Bailey later in the day.

Last week, the S&P 500 reached a milestone by surpassing 5,000 and ended the week at a record high of 5,026.62. Early Monday, US stock index futures are trading slightly lower. Meanwhile, the yield on the benchmark 10-year US Treasury bond remains in the range of 4.1% to 4.2% as investors await the highly anticipated Consumer Price Index (CPI) data from the US, scheduled for release on Tuesday. On Friday, the US Bureau of Labor Statistics (BLS) revised the December CPI increase lower to 0.2% from 0.3%, with the Core CPI remaining unchanged at 0.3% for the same period.

In Canada, Statistics Canada reported a Net Change in Employment of +37.3K in January, with the Unemployment Rate ticking down to 5.7% from 5.8%. Following a dip toward 1.3400, USD/CAD rebounded and closed the day above 1.3450. The pair continues to trade within a narrow range near last week’s closing level.

After a Friday rally of nearly 1%, NZD/USD retreated below 0.6150 during Asian trading hours on Monday, despite hawkish comments from Reserve Bank of New Zealand (RBNZ) officials. RBNZ Deputy Governor Hawkesby assured that the system can handle high interest rates during a hearing before the Finance and Expenditure Committee. Governor Orr reiterated that they are maintaining the cash rate at 5.5% due to persistently high inflation.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

USD 0.06%0.05%0.02%0.07%0.01%0.28%0.03%
EUR-0.06% 0.00%-0.04%0.02%-0.05%0.22%-0.03%
GBP-0.06%0.01% -0.03%0.02%-0.05%0.23%-0.03%
CAD-0.02%0.04%0.03% 0.05%-0.02%0.26%0.00%
AUD-0.07%-0.01%-0.02%-0.05% -0.07%0.20%-0.05%
JPY-0.01%0.05%0.08%0.02%0.07% 0.28%0.02%
NZD-0.27%-0.20%-0.21%-0.24%-0.19%-0.26% -0.24%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

The EUR/USD completed the previous week practically unchanged and continued its downhill slide just below 1.0800 to begin the new week.

On Monday, GBP/USD continued to swing up and down in a tight band over 1.2600. The UK’s Office for National Statistics will publish labor market and inflation figures on Tuesday and Wednesday, respectively.

Following Thursday’s spike, USD/JPY entered a consolidation period on Friday. Early Monday, the pair remained pretty calm over 149.00.

Gold dipped roughly 0.5 percent on Friday as US Treasury bond rates rose ahead of the weekend. Nonetheless, XAU/USD has managed to stay over $2,020.

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