Ekonomické zprávy

Asian session review: the US dollar is showing negative dynamics

TimeCountryEventPeriodPrevious valueForecastActual
00:01United KingdomRICS House Price BalanceFebruary-46%-49%-48%
01:30ChinaPPI y/yFebruary-0.8%-1.3%-1.4%
01:30ChinaCPI y/yFebruary2.1%1.9%1%
06:00JapanPrelim Machine Tool Orders, y/y February-9.7% -10.7%
06:30FranceNon-Farm PayrollsQuarter IV0.3% 0.2%

During today's Asian trading, the US dollar declined moderately against major currencies, retreating from the three-month high, reached yesterday, as investors decided to lock in some profits after the recent rally. Market participants also continue to analyze the statements of Fed Chairman Powell and are preparing for the publication of the US labor market data.

The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.15% to 105.50.

Yesterday, Powell confirmed his message about a potentially faster increase in interest rates, but stressed that the debate is still ongoing, and the decision depends on the data that will be published before the March Fed meeting. According to the CME FedWatch Tool, markets see a 77.9% chance of a 50 basis point rate hike at the Fed's March meeting versus 31.4% a week ago. In addition, the markets now expect that the terminal level of the federal funds rate will be in the range of 5.50-5.75% against 5.25-5.50% earlier this week.

As for the data, today at 13:30 GMT, a report on initial jobless claims for the past week will be released. Economists expect an increase of 195 thousand after a rise of 190 thousand a week earlier.

Meanwhile, a report on nonfarm payrolls for February will be published tomorrow, which is expected to provide additional clues about the pace of further tightening of the Fed's policy. Economists predict that the US economy added 203,000 new jobs, while the unemployment rate remained at 3.4%, and the average hourly wage increased by 0.3% m/m and 4.8% y/y.

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