US Dollar Aims to Extend Rebound, Pound May Overlook Jobs Data
- Yen falls, Aussie Dollar gains as risk appetite firms in Asia
- Pound may not find lasting lead in UK jobless claims data
- US Dollar may gain ground on hawkish Yellen, CPI report
The Japanese Yen was a standout loser in otherwise quiet Asian trade. Regional shares followed Wall Street higher, pressuring the standby anti-risk currency. Investors’ chipper mood likewise offered a lift to the sentiment-sensitive Australian Dollar, with a bit of upbeat economic data helping things along as well.
UK jobless claims data headlines the calendar in European trading hours. Economists’ forecasts point to a slight increase in applications for unemployment benefits. The outcome seems unlikely to leave a lasting impression on the British Pound considering its limited implications for near-term BOE policy.
Later in the day, the spotlight will turn to Washington, DC anew as Fed Chair Janet Yellen sits for a second day of Congressional testimony, this time in the House of Representatives. Another hawkish outing mirroring the tone of yesterday’s proceedings may offer a further lift to the US Dollar.
January’s US CPI data may also prove helpful on this front. The benchmark year-on-year inflation rate is expected to rise to 2.4 percent, the highest in almost five years. Price-growth data has tended to outperform analysts’ forecasts in recent months, hinting a still-higher reading may cross the wires.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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