Most Read: Japanese Yen Forecast: Bearish Signs Build; Setups on USD/JPY, EUR/JPY, GBP/JPY
The US dollar, as measured by the DXY index, climbed on Thursday, supported by rising U.S. Treasury yields. However, gains lacked conviction and volatility was limited as many traders remained on the sidelines awaiting new catalysts in the form of fresh data that could provide additional clues on the Federal Reserve’s monetary policy trajectory.
There are no high-impact macro events scheduled in the U.S. economic calendar for Friday, but next week will see the release of the January inflation report. Forecasts call for a slowdown in annual headline CPI to 3.1% from 3.4% previously. The core gauge is also seen moderating but in a more gradual fashion, easing to 3.8% from 3.9% in December.
If progress on disinflation stalls or proceeds less favorably than anticipated, U.S. Treasury yields are…
