US dollar today - following Tuesday's volatility action, markets have been risk-averse since Wednesday morning and the USD remains firm. January retail sales and industrial production data will be displayed in the U.S. economic calendar along with the New York Fed's Empire State Fed manufacturing survey and December business inventories. ECB President Christine Lagarde will speak at a later date. We have managed to summarize the information about forex news this time from fxstreet.com.


dolar AS
US Dollar Strengthens

 


Data published by the US Bureau of Labor Statistics (BSTK) revealed data on Tuesday that the CPI rose to 0.5% every month in January. This marks the biggest one-month increase since June. The core Consumer Price Index, which excludes food and energy prices, increased by 0.4% over the same period. Although the market's initial reaction to the data was mixed at the start of the American session, the benchmark US Treasury yield rose above 3.7% which helped the US dollar (USD) regain traction. 


Following the inflation figures, the CME Fedwatch Tool group showed market data valuing a more than 80% probability that the Fed will opt for a single rate hike of at least 25 bps in May. Reflecting the gloomy mood of the market, U.S. stock index futures plunged between 0.4% and 0.7% in early Wednesday in Europe. Britain's Office for National Statistics reported on Wednesday that the annual CPI fell to 10.1% in January, lower than December's 10.5%. Similarly, the core CPI also fell to 5.8% from the previous data which reached 6.3% in December. As a result of low inflation, the GBP/USD currency pair traded at 1,200 at the beginning of the European session. 


During Asian trading hours, RBA Governor Philip Lowe said that inflation is still too high and added that there is a risk that the RBA has not acted enough with interest rates. Despite these hawkish comments, AUD/USD is under bearish pressure and the latest data shows almost 1% daily, slightly above 0.6900. Having managed to gain a position above 1.0800 at the beginning of the US session on Tuesday, EUR/USD erased the gains and ended it below 1.0750. The pair held on Wednesday morning, retreating around 1.0700. On the other hand, gold prices extended their decline again with the 10-year U.S. bond yield, holding at 3.7% percentage points in the Asian trading session on Wednesday. XAU/USD last traded at its lowest level since early January below $1,850.