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Dollar slips as investors pivot to upcoming US inflation data
The US Dollar Index is back below 99.0, while USD/JPY falls to fresh seven-month lows near 154.00 as markets reprice additional BoJ tightening.
FXStreet says the US dollar started the week on the back foot, extending Friday’s move and resuming a downward trend after investors digested firmer NFP results. The article notes traders are now looking ahead to Friday’s crucial US inflation release, alongside additional US data due this week including the NFIB Business Optimism Index, ADP Employment Change, and Consumer Inflation Expectations.
In the euro area, EUR/USD remains near the upper end of its recent range beyond 1.1600, supported by fresh selling interest that is pressuring the dollar. In the UK, GBP/USD has followed risk-linked peers higher but appears to have met resistance around 1.3550, while the UK’s BRC Retail Sales Monitor is highlighted as the sole release for the channel.
The newsletter also flags Japan and China as key catalysts for FX moves. Further repricing of possible additional BoJ tightening has helped the yen, sending USD/JPY to new seven-month lows near 154.00, while USD/CNH has slipped back to the 6.7000 area after reversing from January 2023 levels and continuing a third month of retreat.
For commodities linked to broader risk sentiment, FXStreet adds that WTI has tested three-month tops above $93.00 per barrel amid heightened US-Iran tensions, and gold is trading modestly lower just above $4,400 per troy ounce as caution builds ahead of the US inflation data and rate-hike expectations weigh on the metal.
Latest closeGold $4,431.70 ▲1.9%|WTI crude $90.70 ▲0.5%|EUR/USD 1.159 ▼0.1%