US DOLLAR REMAINS STABLE TODAY AHEAD OF IMPORTANT INFLATION DATA IN FOREX

What you should be aware of on Tuesday, March 12 is as follows:

Tuesday morning in Europe continues to see comparatively modest activity on the financial markets. After reporting modest gains on Monday, the US Dollar (USD) Index remains stable just below 103.00. Meanwhile, as investors brace for the release of the February Consumer Price Index (CPI) data, the yield on a 10-year US Treasury note fluctuates at about 4.1%.

The cautious market tone at the start of the week helped the USD hold its ground against its competitors in the lack of important data releases. It is predicted that US annual inflation, as indicated by changes in the CPI, will remain stable at 3.1%. In the same time frame, the annual Core CPI is predicted to increase by 3.7%, which is less than the 3.9% increase that was seen in January. Meanwhile, early in the European day, US stock index futures are up 0.2% to 0.6%, suggesting a positive change in the risk appetite.

US dollar exchange rate for this week

The US dollar's (USD) percentage movement compared to a list of major currencies for this week is displayed in the table below. The US dollar outperformed the Japanese yen in this exchange.

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.

Bank of Japan (BoJ) Governor Kazuo Ueda stated in a Tuesday speech to the Parliament that if 2% inflation is “stably and sustainably in sight,” they will look to remove negative rates, yield curve management, and other significant monetary easing measures. The USD/JPY went north during the Asian session after ending six straight trading days in negative territory. It was last seen trading in positive territory, just below 147.50.

The Business Conditions Index increased to 10 from 7 and the Business Confidence Index of the National Australia Bank dropped to 0 from 1 in February. The AUD/USD pair did not respond to these data and continued its sideways grind above 0.6600 during Asian trading hours.

Monday's 0.35% decline in GBP/USD ended a six-day winning run. Early on Tuesday, the pair finds it difficult to generate momentum and moves in a narrow channel, trading around about 1.2800. In the three months ending in January, the ILO Unemployment Rate increased little to 3.9%, according to the UK's Office for National Statistics. Employment Change decreased by 21K after increasing by 72K earlier. In conclusion, there was a little decrease in pay inflation, as indicated by Average Earnings Excluding Bonus, from 6.2% to 6.1%.

On Monday, the EUR/USD saw slight declines for the second straight trading day. The pair dips below 1.0950 on Tuesday but holds onto modest rebound gains.

Almost unchanged at the close of the first trading day of the week, gold was unable to gain directional momentum. XAU/USD remains in a consolidation phase during the morning hours of Europe and closes the day just below $2,180.