US Dollar holds ground ahead of US CPI, AI fears weigh on stocks
The US Dollar (USD) holds around 97 in the American session on Thursday after Wall Street fell sharply on fresh AI-related fears, as the tech sector is far from generating decent profits. An exclusive Bloomberg article revealed Russia’s intention to return to US Dollar settlement, outlining potential areas for cooperation between the United States and Russia.
These areas include Russia's return to the US dollar-based settlement system, joint ventures in oil and natural gas, collaboration on critical raw materials, and partnerships in nuclear energy. However, the US would need to lift sanctions on Russia, including restoring access to the US Dollar.
On the labor market side, the number of US citizens submitting new applications for unemployment benefits fell to 227K for the week ending February 7. This latest figure exceeded the estimate of 222K, but it was lower than the revised total of 232K from the previous week, according to a report released on Thursday by the US Department of Labor.
The US Dollar Index (DXY) is trading near the 96.90 price region, slightly strengthening, but holding back until Friday’s US January Consumer Price Index (CPI) data.
GBP/USD sees little movement near the 1.3620 price region after the latest US Initial Jobless Claims report witnessed a slight improvement in the job market conditions.
EUR/USD is trading near the 1.1860 price zone, having little movement throughout the day as the pair awaits the Eurozone flash Gross Domestic Product (GDP) (Q4) set to be released on Friday.
USD/JPY is trading near the 152.80 price zone, extending its decline for a fourth straight day, driven by Japan’s election outcome and ongoing intervention concerns.
AUD/USD is trading near the 0.7080 level, trimming all its intraday gains, after posting a three-year high earlier in the day.
Gold is trading near the $4,913 price zone, sloping downwards after posting a three-day low.
Source: Fxstreet.com
