Dollar Strengthens Slightly, Focus Shifts to UK CPI & US PCE
Forex markets moved slightly on Monday (February 16th), as US stock and bond markets were closed (Presidents' Day) and Asian liquidity was also thin due to the Chinese New Year holiday. Amid "quiet but volatile" trading, the DXY held around 97.10 (+0.19%), while EUR/USD fell slightly to 1.1854 (-0.13%) as the dollar strengthened slightly.
The most visible movement came from the yen: USD/JPY rose to 153.49 (+0.52%) after Japan's Q4 2025 GDP grew by only 0.2% (annualized)—far below expectations—which dampened yen buying interest. Meanwhile, AUD/USD remained relatively stable at 0.7076 (+0.06%), while GBP/USD weakened to 1.3632 (-0.13%) ahead of the UK data series.
Market focus now turns to a more data-heavy week: UK employment (Tuesday) and UK CPI (Wednesday), followed by the FOMC minutes (Wednesday), then US PCE and Q4 GDP estimates (Friday)—a package that could determine whether rate cut expectations strengthen or subside. Meanwhile, geopolitical factors are also playing a role: Iranian Foreign Minister Abbas Araghchi has arrived in Geneva ahead of the second round of US-Iran nuclear talks, which could potentially shift risk sentiment.
Source: Newsmaker.id