{"id":1119,"date":"2023-02-17T06:02:57","date_gmt":"2023-02-17T11:02:57","guid":{"rendered":"https:\/\/embarrdowns.com\/us-dollar-strengthens-as-eurozone-data-stays-flat\/"},"modified":"2023-02-17T06:02:58","modified_gmt":"2023-02-17T11:02:58","slug":"us-dollar-strengthens-as-eurozone-data-stays-flat","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/us-dollar-strengthens-as-eurozone-data-stays-flat\/","title":{"rendered":"US Dollar Strengthens as Eurozone Data Stays Flat"},"content":{"rendered":"

The US Dollar (USD) has been strengthening in the past few days after Treasury yields soared.[0]<\/a><\/sup> Supported by upbeat macroeconomic data releases and hawkish comments from Fed officials, the USD Index (USD) reached its highest level since early January above 104.00 on Friday.[0]<\/a><\/sup> <\/p>\n

In the Eurozone, the European Union Commission raised its 2023 GDP forecast to 0.9% from a prior estimate of 0.3% and cut its 2023 inflation forecast to 5.6% from a previous forecast of 6.1%.[1]<\/a><\/sup> This led the Euro to stay at the same level as against a marginally weaker US dollar with EUR\/USD changing hands around 1.0760.[2]<\/a><\/sup><\/p>\n

In the US, retail sales rebounded sharply in January after two straight monthly declines, rising 3.0% on the month compared with December\u2019s 1.1% fall, data showed Wednesday.[3]<\/a><\/sup> The greenback surged on the back of the data release and clung to most of those gains on Thursday, with the US Dollar Index (USD) outperforming its rivals.[4]<\/a><\/sup><\/p>\n

Meanwhile, for the central bank to slow tightening pace from current 50bps per meeting, ECB Governing Council member Centeno said, \u201cwe really need to see inflation converging to 2% in the medium term\u201d.[1]<\/a><\/sup> <\/p>\n

The market will pay close attention to central bank speak ahead of the weekend.[0]<\/a><\/sup> In the absence of high-impact data releases, EUR\/USD should be moved almost solely by the US inflation report today.[5]<\/a><\/sup> The preliminary (i.e. second) release of eurozone growth numbers looks unlikely to impact markets and there is only one scheduled European Central Bank speaker (Gabriel Makhlouf).[5]<\/a><\/sup> <\/p>\n

Data is expected to continue to be the main factor affecting the dollar and the world’s risk climate, as the intensity of the US economic downturn is still a vital determinant of interest rate expectations, particularly concerning the timing, magnitude, and speed of the Federal Reserve’s easing over the next few years.[3]<\/a><\/sup><\/p>\n

From a technical standpoint, the Euro may remain vulnerable to the US dollar.[6]<\/a><\/sup> EUR\/USD moved downward last week, breaking through a Bearish Rising Wedge chart formation.[6]<\/a><\/sup> Investing in foreign currency or other off-exchange products using leverage can be quite risky and may not be suitable for all types of investors.[2]<\/a><\/sup> It is recommended that you assess if trading is suitable for you based on your individual situation before making any decisions.[2]<\/a><\/sup> Engaging in Forex trading carries a[2]<\/a><\/sup> Deposits can be exceeded by losses.[2]<\/a><\/sup><\/p>\n

0. <\/span>“Forex Today: Hawkish Fed bets fuel US Dollar rally ahead of the weekend” FXStreet, 17 Feb. 2023, https:\/\/www.fxstreet.com\/news\/forex-today-hawkish-fed-bets-fuel-us-dollar-rally-ahead-of-the-weekend-202302170703<\/a><\/a><\/p>\n

1. <\/span>“Dollar Fades On Lower T-Note Yields And Stronger Stocks” Barchart, 13 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14160129\/dollar-fades-on-lower-t-note-yields-and-stronger-stocks<\/a><\/a><\/p>\n

2. <\/span>“Euro Update: EUR\/USD Holds Early Gains After EU GDP Release, US CPI Looms” DailyFX, 14 Feb. 2023, https:\/\/www.dailyfx.com\/news\/euro-update-eur-usd-holds-early-gains-after-eu-gdp-release-us-cpi-looms-20230214.html<\/a><\/a><\/p>\n

3. <\/span>“Dollar retreats from six-week high; data deluge eyed By Investing.com” Investing.com, 16 Feb. 2023, https:\/\/www.investing.com\/news\/forex-news\/dollar-retreats-from-sixweek-high-data-deluge-eyed-3005009<\/a><\/a><\/p>\n

4. <\/span>“U.S. dollar advances after producer prices, jobless claims data” CNBC, 16 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/16\/dollar-climbs-on-higher-rate-expectations-aussie-slides-on-jobs-shock.html<\/a><\/a><\/p>\n

5. <\/span>“FX Daily: Asymmetrical upside risks for the dollar today” ING Think, 14 Feb. 2023, https:\/\/think.ing.com\/articles\/fx-daily-asymmetrical-upside-risks-for-the-dollar-today\/<\/a><\/a><\/p>\n

6. <\/span>“US dollar price action setups: EUR, AUD, JPY, GBP” https :\/\/www.ig.com, 14 Feb. 2023, https:\/\/www.ig.com\/en-ch\/news-and-trade-ideas\/us-dollar-price-action-setups–eur–aud–jpy–gbp-230214<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The US Dollar (USD) has been strengthening in the past few days after Treasury yields soared.[0]<\/a><\/sup> Supported by upbeat macroeconomic data releases and hawkish comments from Fed officials, the USD Index (USD) reached its highest level since early January above 104.00 on Friday.[0]<\/a><\/sup> <\/p>\n

In the Eurozone, the European Union Commission raised its 2023 GDP forecast to 0.9% from a prior estimate of 0.3% and cut its 2023 inflation forecast to 5.6% from a previous forecast of 6.1%.[1]<\/a><\/sup> This led the Euro to stay at the same level as against a marginally weaker US dollar with EUR\/USD changing hands around 1.0760.[2]<\/a><\/sup><\/p>\n

In the US, retail sales rebounded sharply in January after two straight monthly declines, rising 3.0% on the month compared with December\u2019s 1.1% fall, data showed Wednesday.[3]<\/a><\/sup> The greenback surged on the back of the data release and clung to most of those gains on Thursday, with the US Dollar Index (USD) outperforming its rivals.[4]<\/a><\/sup><\/p>\n

Meanwhile, for the central bank to slow tightening pace from current 50bps per meeting, ECB Governing Council member Centeno said, \u201cwe really need to see inflation converging to 2% in the medium term\u201d.[1]<\/a><\/sup> <\/p>\n

The market will pay close attention to central bank speak ahead of the weekend.[0]<\/a><\/sup> In the absence of high-impact data releases, EUR\/USD should be moved almost solely by the US inflation report today.[5]<\/a><\/sup> The preliminary (i.e. second) release of eurozone growth numbers looks unlikely to impact markets and there is only one scheduled European Central Bank speaker (Gabriel Makhlouf).[5]<\/a><\/sup> <\/p>\n

Data is expected to continue to be the main factor affecting the dollar and the world’s risk climate, as the intensity of the US economic downturn is still a vital determinant of interest rate expectations, particularly concerning the timing, magnitude, and speed of the Federal Reserve’s easing over the next few years.[3]<\/a><\/sup><\/p>\n

From a technical standpoint, the Euro may remain vulnerable to the US dollar.[6]<\/a><\/sup> EUR\/USD moved downward last week, breaking through a Bearish Rising Wedge chart formation.[6]<\/a><\/sup> Investing in foreign currency or other off-exchange products using leverage can be quite risky and may not be suitable for all types of investors.[2]<\/a><\/sup> It is recommended that you assess if trading is suitable for you based on your individual situation before making any decisions.[2]<\/a><\/sup> Engaging in Forex trading carries a[2]<\/a><\/sup> Deposits can be exceeded by losses.[2]<\/a><\/sup><\/p>\n

0. <\/span>“Forex Today: Hawkish Fed bets fuel US Dollar rally ahead of the weekend” FXStreet, 17 Feb. 2023, https:\/\/www.fxstreet.com\/news\/forex-today-hawkish-fed-bets-fuel-us-dollar-rally-ahead-of-the-weekend-202302170703<\/a><\/a><\/p>\n

1. <\/span>“Dollar Fades On Lower T-Note Yields And Stronger Stocks” Barchart, 13 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14160129\/dollar-fades-on-lower-t-note-yields-and-stronger-stocks<\/a><\/a><\/p>\n

2. <\/span>“Euro Update: EUR\/USD Holds Early Gains After EU GDP Release, US CPI Looms” DailyFX, 14 Feb. 2023, https:\/\/www.dailyfx.com\/news\/euro-update-eur-usd-holds-early-gains-after-eu-gdp-release-us-cpi-looms-20230214.html<\/a><\/a><\/p>\n

3. <\/span>“Dollar retreats from six-week high; data deluge eyed By Investing.com” Investing.com, 16 Feb. 2023, https:\/\/www.investing.com\/news\/forex-news\/dollar-retreats-from-sixweek-high-data-deluge-eyed-3005009<\/a><\/a><\/p>\n

4. <\/span>“U.S. dollar advances after producer prices, jobless claims data” CNBC, 16 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/16\/dollar-climbs-on-higher-rate-expectations-aussie-slides-on-jobs-shock.html<\/a><\/a><\/p>\n

5. <\/span>“FX Daily: Asymmetrical upside risks for the dollar today” ING Think, 14 Feb. 2023, https:\/\/think.ing.com\/articles\/fx-daily-asymmetrical-upside-risks-for-the-dollar-today\/<\/a><\/a><\/p>\n

6. <\/span>“US dollar price action setups: EUR, AUD, JPY, GBP” https :\/\/www.ig.com, 14 Feb. 2023, https:\/\/www.ig.com\/en-ch\/news-and-trade-ideas\/us-dollar-price-action-setups–eur–aud–jpy–gbp-230214<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1118,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1119"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1119"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1118"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}