Mixed US Data Have No Support for Greenback

Market Reviews

Mixed economic data from the US have little support to the greenback, and the currency stays the weakest one. Headline PPI grew by 0.4% mom, 2.7% yoy in January, versus expectation of 0.4% mom, 2.5% yoy. Core PPI increased by 0.4% mom, 2.2% yoy, above forecasts of 0.2% mom, 2.1% yoy. Initial jobless claims increased by 7.000 to 230.000 in the week ended February 10. Empire state manufacturing index fell to 13.1 in February, below expectation of 18.0. Philly Fed survey rose to 25.8, above expectation of 21.6.

The euro rose against the dollar amid lower demand for the US currency and data on the Eurozone trade balance, but then retreated from the highs. The Eurozone trade surplus increased in December compared to the previous month against the background of a higher level of exports. Eurostat data showed that the trade surplus rose to EUR 23.8 billion, taking into account seasonal fluctuations in December from EUR 22 billion in the previous month. The expected level was 22.3 billion euros.

The US inflation data remain at the center of attention, while market participants are discussing the likely rate of interest rate increase by the Fed this year. So, after yesterday's data, many began to discuss the possibility of not three increases in rates this year, as previously expected, but four.

Japan machine orders fell by 11.9% mom in December. Industrial production was revised up to 2.9% mom in December. Australia employment grew by 16.000 in January, unemployment rate declined by 0.1% to 5.5%. Australia consumer inflation expectation increased 3.6% in February.