Forex News Roundup for the Day (16 Feb, 2023)

• Yesterday’s US retail sales data showed a higher-than-expected month-on-month increase of 3.0%, indicating a strong US economy and reinforcing the potential for a more hawkish Fed policy, which boosted the US Dollar. 
• The optimism over stocks has also grown, particularly consumer staples and discretionary goods, resulting in major stock indices trading higher. The S&P 500 Index is within a bullish flag chart pattern which may be indicative of higher prices in the coming days.
• The US Dollar remains strong and markets seem to be increasingly convinced that it will reach a higher terminal rate above 5.25%, leading to a 5-week high price. 
• Among foreign currencies, the New Zealand Dollar is currently the strongest while the Swiss Franc is the weakest, but the focus should be on the US Dollar’s small retracement within a firm bullish short-term trend in the Forex market.
• The Australian unemployment rate increased from 3.5% to 3.7%, which is higher than expected but still a relatively low rate historically. 
• US PPI data which is going to be released shortly may provide more insights into US inflation.
• Annualized inflation in the UK decreased from 10.5% to 10.1%  according to CPI (inflation) data. 
• Some commodities like Sugar and Cocoa are making bullish breakouts recently.

 

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