Dollar Trades Steady Early Thursday in Quiet Trading
The United States (U.S.) dollar saw only modest movements against its major trading partners early Thursday ahead of another light data and trading day.
The highlight of Thursday’s schedule is the Chicago PMI report, the last reading for December before next week’s national ISM data. Also scheduled are weekly reports on initial jobless claims and natural gas stocks.
A quick summary of foreign exchange action heading into Thursday shows that EUR-USD fell slightly to 1.1325 from 1.1347 at the Wednesday US close but was up from 1.1300 a day earlier.
EU consumer inflation for December came in above expectations earlier Thursday, with headline CPI rising to a nearly 30-year high and core CPI surging by 0.4%.
European Central Bank Governing Council Member Klaas Knot told Bloomberg News that the ECB is likely to end its remaining bond purchases by the end of 2022 and to begin rate increases in early-2023, leaving it well behind the Federal Reserve and Bank of England.
GBP-USD was steady at 1.3488 from the Wednesday US close, up from 1.3435 a day ago. Housing prices in the UK surged more than expected in December according to data released earlier Thursday.
COVID cases remain elevated in the UK and will likely see another boost over the next few weeks as a result of holiday gatherings.
USD-JPY rose to 115.1221 from 114.9853 at the Thursday US close and from 114.9149 a day ago. There was no Japanese data scheduled for release on Thursday.
The Bank of Japan will likely remain behind other major countries in adjusting monetary policy, a positive for the US dollar.
USD-CAD slipped modestly to 1.2786 from 1.2791 at the Wednesday US close and from 1.2827 a day ago. There is also no Canadian data scheduled for release on Thursday. #Dollar Trades Steady Early Thursday in Quiet Trading
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