Dollar Weakens, Markets Hesitate Ahead of US Data & Fed Officials' Speeches
The US dollar weakened against most major currencies on Wednesday (January 14th), ahead of a busy slate of US economic data releases. The market is awaiting key data such as the producer price index (PPI), retail sales, and the current account balance, which could alter interest rate expectations and make the dollar more sensitive.
In addition, focus is also on home sales and business inventory data, followed by the EIA oil stockpiles report. Amidst this data schedule, market participants are also watching the updated economic growth projections (Nowcast) and a series of US central bank officials' agendas, which could potentially provide clues about the Fed's future moves.
In the forex market, the euro and pound edged higher against the dollar due to a lack of data from Europe and the UK today. Meanwhile, the Japanese yen strengthened slightly as USD/JPY fell after the latest data showed Japanese business sentiment weakening and machine tool order growth slowing. Investors are also starting to focus on the upcoming Bank of Japan meeting.
For the Canadian dollar, USD/CAD edged lower ahead of the release of Canadian economic data, including key indicators and consumer sentiment. Overall, the dollar's direction today is highly dependent on surprises from US data—if the results deviate from expectations, the market could immediately shift from calm to volatility. (alg)
Source: Newsmaker.id
