Rate cuts and data remain in the spotlight

The US Dollar experienced a corrective decline on Wednesday following Tuesday’s CPI-driven strong rebound, allowing some respite from the recent intense downward pressure in the risk-linked universe.

Here is what you need to know on Thursday, February 15:

The USD Index (DXY) receded from multi-week tops near the 105.00 barrier on the back of some uneven improvement in the risk complex. On Thursday, the US docket will include Retail Sales, the Philly Fed Manufacturing Index, Industrial Production, usual weekly Initial Jobless Claims, Business Inventories, Net Long-term TIC Flows and the NAHB Housing Market Index. In addition, FOMC’s Bostic and Waller are due to speak.

EUR/USD saw its recent decline somewhat alleviated and rebounded from yearly lows in the sub-1.0700 region. On February 15, ECB President C. Lagarde is due to speak, while Balance of Trade results in the broader Euroland are also expected.

GBP/USD accelerated its weekly leg lower on the back of a softer-than-expected UK CPI, which in turn reignited speculation of a potential rate cut by the BoE in the near term. Busy docket on February 15 in the UK, as GDP figures are due seconded by Trade Balance readings, Industrial Production, Manufacturing Production, and the NIESR Monthly GDP Tracker.

USD/JPY reversed two consecutive daily gains, including a move to fresh YTD peaks near 151.00, following renewed selling pressure in the dollar and diminishing US yields. On February 15, GDP figures will grab all the attention in the domestic calendar along with the final Industrial Production results.

AUD/USD regained some balance and bounced off Tuesday’s 2024 lows, approaching the 0.6500 neighbourhood ahead of the opening bell in the Asian markets. On Thursday, the release of Australia’s labour market report will take centre stage, seconded by February Consumer Inflation Expectations.  

The larger-than-predicted weekly build of US crude oil supplies (+12.018M barrels) prompted WTI prices to set aside seven sessions of gains and retreat below the $77.00 mark per barrel on Wednesday.

On the commodities’ front, Gold prices extended their bearish performance and revisited the $1,985 zone, while Silver prices met some buying interest after briefly breaking below the $22.00 mark per ounce.