FOREX TODAY: BEFORE MID-TIER DATA RELEASES, THE US DOLLAR CONSOLIDATES GAINS

US DOLLAR CONSOLIDATES GAINS

WHAT YOU NEED KNOW ON FRIDAY, MARCH 15 IS AS FOLLOWS:

Following a quiet start to the week, the US Dollar (USD) gained ground against its competitors on Thursday. The USD Index increased by more than 0.5% the previous day, but it is still in a stabilization phase as of early Friday, hovering around 103.50. The February Export and Import Price Index and statistics on industrial production will be included in the US economic docket later in the day. The preliminary results of the Federal Reserve Bank of New York's Empire State Manufacturing Survey and the University of Michigan's preliminary March Consumer Sentiment Index will be released to the public.

According to US data, the Producer Price Index increased 1.6% annually in February. This outcome exceeded the 1.1% market consensus and came after a 1% increase in January. Retail sales decreased by 1.1% in January, but increased by 0.6% in February, according to data from the US Census Bureau. Following the announcement of these data, the yield on the benchmark 10-year US Treasury note increased to 4.3%, which helped to strengthen the USD. Early in the morning, the 10-year yield in Europe varies by less than 4.3%. US stock index futures are currently trending slightly lower following Wall Street's primary indexes' negative closing on Thursday.

THIS WEEK'S US DOLLAR EXCHANGE RATE

The US dollar's (USD) percentage movement compared to a list of major currencies for this week is displayed in the table below. When compared against the New Zealand dollar, the US dollar was the strongest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

Despite mounting anticipation that the Bank of Japan may move to end the negative interest rate policy at next week's policy meeting, the USD/JPY continued its upward trend and finished over 148.00 on Thursday. The USD/JPY fell below this level entering the European session on Friday after making a new weekly high over 148.50 during Asian trading hours.

The EUR/USD pair witnessed a notable decline in the latter half of the day on Thursday, ultimately closing below 1.0900. The pair is calm as they head into the early European hours of Friday.

The AUD/USD pair continued to decline after falling 0.6% on Thursday, hitting its lowest level since March 6 on Friday during the Asian session, near 0.6550. The pair is still well below 0.6600 even if it was able to regain some of its losses.

On Thursday, the GBP/USD exchange rate dropped further, settling well below 1.2800 and entering negative territory. The pair dips below 1.2750 and is cautious during the early European session.

Gold fell on Thursday during the American session and finished below $2,160 as a result of growing interest rates on US Treasury bonds. Early on Friday, the US 10-year yield struggles to hold onto its gains from Thursday, while XAU/USD rebounds and remains above $2,160.