US Dollar Rises Ahead of Economic Data Release
The US dollar rose against its major trading partners early Thursday ahead of a busy data schedule that starts with weekly jobless claims and the final estimate of Q4 gross domestic product.
Along with weekly natural gas stocks, the final University of Michigan consumer sentiment index for March and the pending home sales data for February are scheduled for release.
US Fed Governor Christopher Waller said Wednesday evening it would be “appropriate to reduce the overall number of rate cuts or push them further into the future in response to the recent data.”
Waller said he still believes rate reductions could be appropriate this year but added there was no rush to begin easing policy until the Fed sees further evidence of inflation improvement, citing a “significantly lower” risk of waiting longer than cutting too soon. The Federal Open Market Committee meeting on June 11–12 has a 63.5% chance of a rate cut, according to the CME Fed Watch Tool, down from 70.1% at the same time on Wednesday.
A quick summary of foreign exchange activity heading into Thursday showed that USDEUR fell to 1.0790 from 1.0828 at the Wednesday US close and 1.0833 at the same time Wednesday morning. Eurozone loan growth to non-financial corporations accelerated in February, data released earlier Thursday showed. The next European Central Bank meeting is scheduled for April 11.
From 1.2641 at the US close on Wednesday and 1.2632 at the same time on Wednesday morning, the GBPUSD dropped to 1.2619. UK GDP declined in Q4 from the previous quarter and a year earlier, data released overnight showed, in line with the preliminary data for the quarter released last month. The next Bank of England meeting is scheduled for May 9.
USDJPY rose to 151.3562 from 151.3066 at the Wednesday US close and 151.1359 at the same time Wednesday morning after talk of invention from Japanese officials drove the pair lower earlier in the week. No Japanese data were made available overnight. The next Bank of Japan meeting is scheduled for April 25-26.
USDCAD rose to 1.3586 from 1.3568 at Wednesday’s US close but was below a level of 1.3594 at the same time Wednesday morning. Canadian GDP data for January and a preliminary estimate for February are scheduled to be released. The next Bank of Canada meeting is set for April 10. US Dollar Rises Ahead of Economic Data Release Naira Devaluation Deepens Economic Crisis in Nigeria
