Market Drivers – US Session, February 14

The US Dollar retreated after a strong rebound on Tuesday due to CPI, easing the pressure in the risk-linked universe. The USD Index (DXY) fell from multi-week highs near the 105.00 barrier due to uneven improvement in the risk complex.

Economic Data

Retail Sales, the Philly Fed Manufacturing Index, Industrial Production, the customary weekly Initial Jobless Claims, Business Inventories, Net Long-term TIC Flows, and the NAHB Housing Market Index are among the items on the US docket for Thursday. Bostic and Waller of FOMC are also scheduled to speak.

February 15 is a busy day in the UK because the NIESR Monthly GDP Tracker, Trade Balance readings, Industrial Production, and Manufacturing Production all are on the economic calendar.

Key Price Actions

With the dollar under renewed selling pressure, the USD/JPY pair reversed two straight days of gains, including a climb to new year to day heights near 151.00. Japan’s GDP data and the final Industrial Production results will be the centre of interest on February 15 in the domestic calendar.

After hitting annual lows in the sub-1.0700 range, the recent fall in EUR/USD was somewhat mitigated. The President of the European Central Bank, Christine Lagarde, is scheduled to appear on February 15. Euroland’s balance of trade results are also anticipated.


A weaker-than-expected UK CPI led to an acceleration of the GBP/USD weekly downtrend, which in turn sparked fresh rumours of a possible rate cut by the BoE soon.

AUD/USD regained some balance and bounced off Tuesday’s 2024 lows, approaching 0.6500 ahead of the opening bell in the Asian markets. On Thursday, the release of Australia’s labour market report will take centre stage, seconded by February Consumer Inflation Expectations.

The larger-than-predicted weekly build of US crude oil supplies (+12.018M barrels) prompted WTI prices to set aside seven sessions of gains and retreat below the $77.00 mark per barrel on Wednesday.

As for commodities, gold prices extended their bearish performance and revisited the $1,985 zone, while Silver prices met some buying interest after briefly breaking below the $22.00 mark per ounce.

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