This is what you need to know on Monday, February 17:
The main currency pairs quote near the closing levels of the previous week on Monday, since the negotiation conditions remain scarce, with the financial markets of the US closed due to the presidents of the presidents day. The economic calendar will not offer high -level data, but investors will pay close attention to the comments of the Federal Reserve (FED) officials later in the day.
US dollar last 7 days
The lower table shows the percentage of change of the US dollar (USD) compared to the main currencies last 7 days. US dollar was the weakest currency against pound sterling.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.50% | -1.55% | 0.38% | -0.74% | -1.38% | -1.24% | -1.00% | |
| EUR | 1.50% | 0.02% | 2.02% | 0.89% | 0.12% | 0.35% | 0.60% | |
| GBP | 1.55% | -0.02% | 1.84% | 0.84% | 0.10% | 0.29% | 0.56% | |
| JPY | -0.38% | -2.02% | -1.84% | -1.16% | -1.69% | -1.63% | -1.37% | |
| CAD | 0.74% | -0.89% | -0.84% | 1.16% | -0.62% | -0.54% | -0.30% | |
| Aud | 1.38% | -0.12% | -0.10% | 1.69% | 0.62% | 0.23% | 0.47% | |
| NZD | 1.24% | -0.35% | -0.29% | 1.63% | 0.54% | -0.23% | 0.24% | |
| CHF | 1.00% | -0.60% | -0.56% | 1.37% | 0.30% | -0.47% | -0.24% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
The data published by the US Census Office announced on Friday that retail sales decreased by 0.9% monthly in January, worse than the market expectation of a 0.1% decrease. He US dollar (USD) Index struggled for a traction for the weekend and lost more than 1% in weekly terms. On Monday morning, the USD index remains virtually unchanged in the day, slightly below 107.00.
During Monday’s Asian negotiation hours, Japan’s data showed that industrial production contracted 0.2% in December, after the growth of 0.3% recorded in November. Meanwhile, the chief secretary of the Japanese Cabinet, Yoshimasa Hayashi, said that Japan faces significant challenges if their companies become objectives in the midst of US president’s policies, Donald Trump. He added that the Government will carefully respond to possible impacts. USD/JPY It remains under a modest bearish pressure to start the new week and quotes below 152.00.
EUR/USD It benefited from the generalized selling pressure around USD and rose more than 1.5% last week. The pair moves laterally in a narrow range below 1,0500 in the European morning on Monday.
GBP/USD He reached his strongest level since December 19 in 1,2630 on Friday, but erased a part of his daily profits in the second half of the day. However, the pair rose 1.5% and closed the second consecutive week in positive territory. In the early European session, the GBP/USD remains calm around 1,2600.
The Bank of the Australian Reserve (RBA) will announce monetary policy decisions in the Early Asian session on Tuesday. Investors expect the RBA to reduce the policy rate at 25 basic points (PBS) to 4.1% from 4.35%. AUD/USD It remains firm early on Monday and trades at its highest level since mid -December above 0.6350.
Gold He ran abruptly on Friday and lost more than 1.5% in the day. The XAU/USD recovers its traction on Monday and modestly lifes up to the day about $ 2,890.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
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.
