The long-awaited release of US inflation for the month of December was higher than initial estimates, giving a further boost to the dollar, as investors believe that the Federal Reserve could delay its first interest rate cut. Friday's agenda will once again be very interesting, with US inflation as the protagonist, although this time through Production Prices. Furthermore, in China the CPI and the always relevant Trade Balance will be published. In the UK, GDP and Industrial and Manufacturing Production figures will also be in focus.
Here's what you need to know on Friday, January 12:
Higher-than-expected US inflation figures for December led investors to rethink the idea of ​​the Federal Reserve cutting its interest rates in the second quarter. The US Dollar Index (DXY) reached new highs near 102.80, although that move faded late in the session.
US stocks as measured by the Dow Jones reached an all-time high just above the 37,800 bar before the CPI-driven push, only to regain traction towards the end of the day.
The EUR/USD pair modestly flirted with the 1.1000 barrier before US CPI momentum dragged the spot towards the 1.0930 area. However, the pair managed to regain its composure along with the rest of the risk assets.
GBP/USD joined Wednesday's rally and rose to the 1.2770/75 band, approaching 2024 year-to-date highs, pending the release of key data at the end of the week.
USD/JPY failed to maintain the initial move towards multi-week highs above 146.00 and retreated to the 145.60 area towards the Wall Street close. The late corrective decline in the Dollar as well as mixed US returns accompanied the pair's price action.
Selling pressure gave no respite to the Australian Dollar, leading the AUD/USD pair to set new weekly lows near 0.6650 following a volatile session in the dollar and mixed activity in the commodities sector, all ahead of the data. key from China to be published on Friday.
USD/CAD reached new four-week highs near 1.3440 thanks to tepid gains in the Dollar and despite the notable recovery in crude oil prices.
Gold and Silver prices continued to decline during the week, given the possibility that the Fed will not start cutting interest rates as soon as expected.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
