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Forex Today: Dollar stabilizes ahead of output inflation data and Jerome Powell's speech

Here's what you need to know to trade today Tuesday May 14:

Action in the currency markets remains calm after Monday's subdued trading. The US Dollar Index (USD) continues to fluctuate in a narrow channel above 105.00, as investors await April producer inflation data and Federal Reserve Chairman Jerome Powell's speech. The results of the ZEW survey for Germany and the Eurozone will be published on the European economic agenda.

The yield on the ten-year US Treasury bond closed the first day of the week unchanged and the main stock indices closed with little change. The Producer Price Index (PPI) is expected to rise 0.3% monthly in April, following the 0.2% increase recorded in March. Early in the American session, Fed Chairman Jerome Powell will participate in a moderated debate with De Nederlandsche Bank (DNB) Chairman Klaas Knot at the Annual General Meeting of the Foreign Bankers Association in Amsterdam.

US Dollar Prices This Week

The following table shows the percentage variation of the United States Dollar (USD) against the main currencies quoted this week. The US dollar was the strongest currency against the British pound.

USD 0.13% 0.23% -0.44% -0.07% -0.05% -0.15% -0.24%
EUR -0.13% 0.15% -0.56% -0.17% -0.15% -0.26% -0.36%
GBP -0.23% -0.15% -0.63% -0.33% -0.30% -0.41% -0.51%
JPY 0.44% 0.56% 0.63% 0.39% 0.35% 0.34% 0.16%
CAD 0.07% 0.17% 0.33% -0.39% -0.01% -0.07% -0.10%
AUD 0.05% 0.15% 0.30% -0.35% 0.00% -0.01% -0.21%
NZD 0.15% 0.26% 0.41% -0.34% 0.07% 0.00% -0.10%
CHF 0.24% 0.36% 0.51% -0.16% 0.10% 0.21% 0.10%

The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the US Dollar in the left column and scroll down the horizontal line to the Japanese Yen, the percentage change that appears in the box will represent USD (base)/JPY (quote).

He EUR/USD rose above 1.0800 on Monday, but erased a small portion of its daily gains in the American session to close below this level. Early on Tuesday, the pair fluctuates in a narrow channel around 1.0780.

He USD/JPY went up 0.3% on Monday and continued to advance towards 156.50 early on Tuesday. Japanese Finance Minister Shunichi Suzuki repeated on Tuesday that it is important for currencies to move stably, reflecting fundamentals. He added that they will closely monitor currency movements. Earlier, data from Japan showed the PPI rose 0.9% year-on-year in April, matching market expectations and March's rise.

Meanwhile, the International Monetary Fund (IMF) stated that Japan's commitment to allowing the Japanese Yen (JPY) to move flexibly would allow the Bank of Japan (BoJ) to focus on achieving price stability and warned against calling of certain experts to use monetary policy to limit the depreciation of the currency, according to Reuters.

The UK's Office for National Statistics reported on Tuesday that the ILO unemployment rate rose to 4.3% in the three months to March, from the expected 4.2%. The number of job seekers increased by 8,900, while employment fell by 177,000 in April. On the other hand, average earnings without premiums rose 6% annually in the three months to March, while average earnings with premiums rose 5.7% annually in the same period. The pair GBP/USD did not show an immediate reaction to this data and last moved up and down in a narrow band around 1.2550.

He Gold suffered a downward correction and lost around 1% on Monday. XAU/USD rose early on Tuesday but remains below $2,350.

Economic indicators

Fed Chairman Powell's speech

Jerome H. Powell took office as a member of the Board of Governors of the Federal Reserve System on May 25, 2012, to fill an unexpired term. On November 2, 2017, President Donald Trump nominated Powell to be the next chairman of the Federal Reserve. Powell assumed the role of President on February 5, 2018.

Read more.

Next post: Tue May 14, 2024 14:00

Frequency: Irregular



Fountain: Federal Reserve

Source: Fx Street

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