The US Dollar is Trading Mixed in Front of the Published of Report
Before the publication of December personal income, expenditure, and pricing statistics, the US dollar was mixed against its main trading partners early Friday, rising against European currencies but falling against the yen and Canadian dollar.
The Federal Reserve's favored inflation indicators, the overall and core PCE price indexes, will be the market's attention. A further slowing in these categories' year-over-year rates would go a long way toward confirming prevailing forecasts for a lesser 25 basis point rate hike at the Federal Open Market Committee meeting next week.
The final January University of Michigan attitude index, as well as December pending home sales data, will be revealed, followed by the Kansas City Fed's monthly services survey for January.
Federal Reserve officials will keep silent until after the FOMC meeting on January 31-February 1. A short recap of Thursday's foreign currency activities indicates that the EUR-USD declined to 1.0881 from 1.0891 at the Thursday US closing and 1.0902 at the same time Thursday morning.
According to figures released earlier Friday, EU money supply growth slowed in December, as did the rate of loan growth to firms. On February 2, the European Central Bank's monetary policy committee will convene, and it is likely to raise its benchmark interest rate by another 50 basis points.
GBP-USD declined to 1.2366 from 1.2419 at the US close on Thursday and 1.2394 at the same time the next day. There is no UK data on the program for Friday. The Bank of England's monetary policy committee will also convene on February 2 and is likely to raise its benchmark interest rate by 50 basis points.
The USD-JPY fell to 129.9418 from 130.2256 at the US close on Thursday, although it remained somewhat higher than the 129.8842 level at the same time Thursday morning.
The Tokyo consumer price index, a barometer for overall Japanese consumer pricing data, increased faster year on year in January, according to statistics released tonight. The next meeting of the Bank of Japan is set for March 9-10.
The USD-CAD slipped to 1.3317 from 1.3322 at the US closing on Thursday and 1.3384 at the same time on Thursday morning. The Canadian budget balance for November is set to be announced today. Following the Bank of Canada's decision on Wednesday to raise its main rate by 25 basis points and then pause, the next meeting is planned for March 8.