The U.S. Dollar is the G10’s best performer this morning as the war in Iran continues to keep oil prices elevated heading into the weekend.
Today will also be a busy day for U.S. economic data, with Gross Domestic Product, Durable Goods, and Personal Consumption figures being released at 8:30 Eastern, followed by the University of Michigan’s Consumer Sentiment survey and JOLTS job figures at 10. Numbers are expected to signal solid, if slowing, economic growth, manageable inflation, and a tight job market.
What to Watch This Week…
- Monex USA Online is always open
GBP ⇓
The British Pound is the G10’s biggest loser versus the Greenback this morning following a GDP release that showed a surprising degree of stagnation in the month of January, which challenges the idea that the economy would turn a corner this year. The UK, along with the rest of Europe, continues to be particularly sensitive to energy prices, and have felt an outsized amount of pain as a result of rising oil prices. The Bank of England is unlikely to have their stance shifted by the GDP print, but ongoing inflation risks from the war could force their hand.
JPY ⇓
The Japanese Yen is at its weakest level against the Buck since July 2024. The Yen remains particularly sensitive to energy prices, so the recent surge in oil has brought the Yen back into ranges where authorities have previously intervened to support it. While Japanese officials have indicated that they are primarily concerned with volatility in price action, as opposed to specific price levels, should the Yen continue to depreciate significantly, then expect intervention to be back on the table.
