The U.S. Dollar is trading in mixed ranges against its G10 peers following a statement from President Trump late yesterday afternoon indicating that the war in Iran could be over “very soon.”
The U.S. Dollar is trading in mixed ranges against G10 peers this morning ahead of Consumer Price Index figures being released at 8:30 Eastern. Traders are watching this release with particular interest to gain insight into the timing future interest-rate moves. Inflation concerns have abounded over the past few weeks, and as such, policymakers will be looking for a softer print this morning. The month-over-month figure is expected to print at 0.3%, versus 0.2% for the prior month, and the year-over-year figure is expected to print at 2.4%, versus 2.4% prior. A print that is in line with expectations would indicate that average prices are rising at a predictable and manageable rate.
What to Watch This Week…
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AUD ⇑
The Australian Dollar is the G10’s biggest gainer versus the Greenback this morning as Traders continue to amp up bets that the Reserve Bank of Australia will hike interest rates at their March 17th meeting, the probability of a 25-bps hike currently sits at 72.9%. Support for the hike increased dramatically following comments from RBA Deputy Governor Hauser that inflationary pressure from the war in Iran would be “unhelpful.”
JPY ⇓
The Japanese Yen is trading lower against the Buck this morning following an announcement from Prime Minister Sanae Takaichi that Japan will unilaterally release oil from it’s strategic reserves, potentially as soon as March 16th. The release will include the equivalent of 15 days of supply from private sector stocks, and one month’s supply from national reserves. While they boast stockpiles equivalent to 250+ days of supply, Japan is particularly vulnerable to disruptions in energy flows, and PM Takaichi is moving quickly to stay ahead of any disruption and consequential inflation.
