Anna 
The U.S. dollar remained under pressure early on Thursday, with the U.S. dollar index inching towards 102.00 after a lower close on Wednesday. The forthcoming U.S. economic reports, including weekly jobless claims data and the December Consumer Price Index (CPI), are poised to play a pivotal role in shaping the dollar’s trajectory.
In the absence of major macroeconomic releases, the dollar struggled to maintain resilience against its counterparts during Wednesday’s U.S. trading session. Positive risk sentiment, reflected in a 0.2% to 0.4% rise in U.S. stock futures, further weighed on the greenback. Additionally, the 10-year U.S. Treasury auction exhibited a yield of 4.02%, a decrease from December’s 4.29%, adding to the downward pressure on the dollar.
Anticipation surrounds the U.S. CPI data, with expectations of a rise to an annual rate of 3.2%, up from November’s 2.1%. Core CPI, excluding volatile food and energy prices, is projected to increase by 0.3% on a monthly basis. A deviation from these expectations could impact market sentiment, potentially leading to a rally in stocks if high core CPI projections fall through.
In the Asian trading session, Australian data revealed a 7.9% monthly decline in imports in December, accompanied by a 1.7% monthly increase in exports. AUD/USD continued its upward movement, trading above 0.6700. Meanwhile, EUR/USD strengthened, closing above 1.0950, and GBP/USD regained 1.2700 during the U.S. session on Wednesday, extending its rebound into Thursday’s Asian session.
USD/JPY experienced a rally towards 146.00 on Wednesday, despite renewed weakness in the U.S. dollar. However, the pair witnessed a technical pullback early on Thursday, trading in negative territory below 145.50.
Gold, facing the headwind of the 10-year U.S. Treasury note yield holding steady near 4%, concluded slightly lower on Wednesday, with Gold/USD recovering marginally above $2,030. As the market eagerly awaits the U.S. economic reports, these developments set the stage for a dynamic and potentially volatile trading session.
