Dollar Rebounds Slightly, Market Focus Is Only One: CPI
The US dollar is on track to lock in its first daily gain in five sessions ahead of the US CPI release, as investors choose to reduce risk exposure and tidy up positions ahead of the big data. The Bloomberg Dollar Spot Index rose around 0.2% on Friday (February 13th), indicating a resurgence of defensive demand for the greenback, though not yet aggressive.
Movements in the G10 market were relatively "neat" and tended to be narrow, as market participants held back ahead of the release of inflation figures. The prevailing consensus expects the US headline CPI to slow to 2.5% (y/y) from 2.7%, while the core CPI is expected to be around 2.5% (y/y) from 2.6%—data that will determine whether the Fed's interest rate cut narrative remains secure or is further pushed back.
Among major pairs, the euro weakened slightly, with EUR/USD down 0.1% to $1.1855, while the yen also came under pressure, with USD/JPY hovering around 153.31 per dollar (the yen weakened by around 0.4%). However, comments by BOJ official Naoki Tamura, who assessed the possibility of a 2% inflation target being "confirmed" around spring, remain a factor keeping the market wary of yen volatility.
In Europe, EUR/GBP is trading in the 0.87 range (around 0.871), reflecting a market that remains cautious about the outlook for the BoE and ECB amid mixed data.
Source: Newsmaker.id
