At the start of the week, the US dollar faced buying pressure. The unexpectedly strong results of the US Non-Farm Payrolls (NFP) report from the previous week boosted the dollar’s strength. Additionally, Federal Reserve Chairman Powell’s interview on CBS’s “60 Minutes” further impacted the market. Powell reiterated that he doesn’t see a high likelihood of starting rate cuts in March and mentioned that he would like to see more confidence before taking a significant step. He also stated that he is proposing the first rate cut around mid-year.
The next key economic statistic to watch for is the US Consumer Price Index (CPI), scheduled for release on February 13th. This week can be described as a lull in terms of market-moving events. With the positive factors for dollar buying already in place, the US dollar is expected to remain resilient. However, it’s worth noting that there may be some adjustments later in the week, possibly related to the US CPI data.
Today, in the global markets, economic indicators to watch for include the final Non-Manufacturing PMI figures for France, Germany, the Eurozone, the UK, and the US, as well as Germany’s trade balance data for December, Turkey’s Consumer Price Index for January, and the Eurozone Producer Price Index for December. While Eurozone Non-Manufacturing PMI is expected to remain below the 50 threshold, indicating contraction, both the US and the UK are likely to maintain levels above 50, indicating expansion. This could exert selling pressure on the Euro.
In terms of events and speeches, speeches and event participation are scheduled for later in the day, featuring speakers like Goolsbee, President of the Federal Reserve Bank of Chicago, Pill, Chief Economist of the Bank of England, and Bostic, President of the Federal Reserve Bank of Atlanta. Corporate earnings reports continue this week, with companies like McDonald’s and Caterpillar expected to garner attention.
Today, the plan is to monitor the USD’s movements after the release of the ISM Non-Manufacturing PMI and then make entry decisions accordingly.