US Dollar Falls Ahead of Economic Data
The US dollar fell against its major trading partners, except for a gain versus the yen ahead of economic data. A slew of soft data and renewed expectations that US President Donald Trump’s tariffs will only be a short-lived transactional measure hurt the dollar last week, ING said in a note.
“The direction of US protectionism will be the main driver beyond the short term, and we should see the discussion on Mexico and Canada tariffs return to centre stage as the deadline for the delayed tariffs is a week away.”.
The dollar has become more sensitive to US data (also non tier-one), and there are a few market moving releases in this week’s calendar. “We have seen indications—from both data and corporate earnings guidance – that the consumption story has deteriorated at the start of 2025”, ING said.
Tuesday’s highlights include nonmanufacturing readings from the Philadelphia, Richmond and Dallas Fed banks, weekly Redbook same-store sales and home price data. Wednesday’s releases include weekly mortgage applications data, new home sales, and weekly petroleum stocks inventory data.
The second look at Q4 GDP is due to be released Thursday, along with weekly jobless claims, durable goods orders, pending home sales and weekly natural gas stocks inventory data.
Personal income, spending and price data are due Friday, along with advance trade data, the Chicago purchasing managers’ index and Kansas City Fed services data.
A quick summary of foreign exchange activity heading into Monday showed that USDEUR rose to 1.0471 from 1.0460 at the Friday US close and 1.0468 at the same time Friday morning.
Eurozone consumer prices declined in January, but the year-over-year rate accelerated modestly, while the year-over-year rate for core prices was the same as in the previous month, data released earlier Monday showed. The next European Central Bank meeting is scheduled for March 5-6.
GBPUSD rose to 1.2640 from 1.2630 at the Friday US close but was below a level of 1.2645 at the same time Friday morning. There are no UK data on Monday’s schedule, but Bank of England Deputy Governor David Ramsden is set to speak, followed by policy board member Swati Dhingra. The next Bank of England meeting is scheduled for March 20.
USDJPY rose to 149.7910 from 149.1691 at the Friday US close but was below a level of 150.4032 at the same time Friday morning. Monday is a holiday in Japan, so there were no data released overnight. The next Bank of Japan meeting is scheduled for March 18-19.
USDCAD fell to 1.4216 from 1.4229 at the Friday US close but was above a level of 1.4194 at the same time Friday morning. #US Dollar Falls Ahead of Economic Data Nigerian Exchange Shrinks as Equities Investors Lose N166bn
