Market Update: Dollar, Gold, and Oil in Focus Today

Market Update: The dollar slides, gold is steady, and oil is elevated. Central bank remarks and economic data will impact trading sessions.

Washington DC, February 14, 2024 (AP) — The dollar index (DXY) gradually declined, slipping below 104.80, while spot gold prices remained stable around $1,992/oz. Conversely, crude oil prices sustained their elevated position, with WTI oil finding support at $77 per barrel.

Implications for Europe & US Sessions

Federal Reserve Governor Michael Barr will participate in a moderated discussion titled “A View from the Federal Reserve Board of Governors” at the Annual National Association for Business Economics Economic Policy Conference in Washington, DC. During this session, we anticipate audience queries. Any potentially hawkish remarks from Barr are poised to bolster the dollar further following yesterday’s inflation report, which exceeded expectations.

Dollar Index (DXY)

Key News Events Today

• FOMC Member Barr Speaks (9:00 pm GMT)

Forecast for DXY

Governor Barr’s participation in the moderated discussion is expected to be pivotal, especially after yesterday’s inflation data. Any hawkish sentiments expressed could lead to a surge in the dollar’s value.

Gold (XAU)

Key News Events Today

• FOMC Member Barr Speaks (9:00 pm GMT)

Forecast for Gold

Governor Barr’s speech could impact gold prices. If his remarks are hawkish, they may strengthen the dollar, causing a dip in gold prices.

Market Update: Dollar, Gold, and Oil in Focus Today

Australian Dollar (AUD)

Forecast for AUD

Following the unexpected CPI data from the US, the Australian Dollar experienced a significant decline, and this downward trend is likely to persist throughout the day.

Kiwi Dollar (NZD)

Forecast for NZD

Following the hotter-than-expected US CPI data, analysts anticipate that the Kiwi Dollar will experience downward pressure similar to the Australian Dollar.

Japanese Yen (JPY)

Forecast for JPY

Today, the Japanese Yen might experience a temporary pullback despite recent gains, as potential intervention measures by the Bank of Japan and higher GDP growth could strengthen the Yen in the short term.

Euro (EUR)

Forecast for EUR

The Eurozone’s economic growth is anticipated to remain stagnant, with industrial production likely to decline further, exerting downward pressure on the Euro.

Swiss Franc (CHF)

Forecast for CHF

Following yesterday’s softer-than-expected inflation data in Switzerland, the Swiss franc experienced significant selling pressure. However, it could regain strength later in the day.

Pound (GBP)

Forecast for GBP

Despite moderating inflation in the UK, the Pound could experience increased demand if the CPI data for January exceeds expectations.

Canadian Dollar (CAD)

Forecast for CAD

Bank of Canada Deputy Governor Rhys Mendes’ speech, could influence the direction of the Loonie, with any hawkish comments likely to cause a pullback in USD/CAD during the US session.

Oil

Key News Events Today

• EIA Crude Oil Inventories (3:30 pm GMT)

Forecast for Oil

While geopolitical tensions continue to support crude oil prices, the recent hot CPI data from the US may hinder further gains. Market analysts expect the EIA inventories report to influence oil prices soon.

Factors, including central bank remarks, economic data releases, and geopolitical developments, are anticipated to influence today’s trading sessions and shape the direction of various currency pairs and commodities.

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