US Dollar keeps its footing following Friday’s rally, eyes on mid-tier data

The US Dollar stays resilient against its major rivals early Monday after having registered impressive gains following the stronger-than-expected PCE inflation data on Friday. Consumer and business sentiment survey from the Eurozone will be watched closely by market participants. Later in the day, the US economic docket will feature Durable Goods Orders and Pending Home Sales data for January.

The US Bureau of Economic Analysis reported on Friday that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred gauge of inflation, edged higher to 4.7% in January from 4.6% in December on the back of a 0.6% monthly increase. The US Dollar Index (DXY) rallied during the American trading hours and climbed above 105.00 for the first time since early January. Following a two-day slide, the benchmark 10-year US Treasury bond yield regained its traction and advanced toward 4%. Early Monday, the DXY stays relatively quiet slightly below 105.50 and the 10-year US T-bond yield moves sideways at around 3.95%. Meanwhile, US stock index futures trade flat in the European morning following the selloff witnessed in Wall Street’s main indexes ahead of the weekend.

EUR/USD lost more than 100 pips last week and continued to edge lower early Monday. The pair was last seen trading at its lowest level since January 6 at 1.0535. Ahead of the weekend, EU member stated approved new sanctions against Russia that include new trade bans and export restrictions. European Commission will publish Economic Sentiment Indicator, Business Climate and Consumer Sentiment Indicator readings for February later in the session.

GBP/USD broke below on Friday and fell sharply heading into the weekend. The pair stays under modest bearish pressure and trades in negative territory below 1.1950 in the European morning. The Times reported on Sunday that British Prime Minister Rishi Sunak may have obtained ‘significant concessions’ in a looming Brexit deal. British Deputy Prime minister Dominic Raab told BBC’s Laura Kuenssberg on Sunday that the government had made ‘great progress’ negotiating with the EU. These developments, however, don’t seem to be helping Pound Sterling find demand for the time being.

USD/JPY surged to its highest level in two months above 136.00 on Friday. The pair fluctuates in a relatively tight channel at around 136.50 on Monday. Bank of Japan (BoJ) Governor designate Kazuo Ueda said earlier in the day that it will be appropriate to continue monetary easing and noted that it will be possible to achieve 2% inflation by doing that.

Gold price registered losses every day last week and closed at its lowest level since late December. XAU/USD stays under modest bearish pressure but manages to hold above $1,800.

Bitcoin lost more than 3% on Friday and stayed quiet on Saturday before staging a technical correction on Sunday. BTC/USD was last seen moving sideways at around $23,400. Ethereum rose nearly 3% on Sunday and reclaimed $1,600. Early Monday, ETH/USD holds steady slightly below $1,650.

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