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The Week Ahead: US Inflation Numbers to Drive Dollar Focus

US Dollar Inflation

Monday sees attention on housing sector and regional data from Chicago and Dallas, with recent inflation figures shaping expectations of a soft landing. Tuesday brings core durable goods orders and consumer confidence data, pivotal for influencing consumer spending. Thursday features finalized Q4 GDP and jobless claims, with tight labor market conditions and consumer sentiment figures shaping Fed rate cut expectations. Friday’s Core PCE Price and personal income/spending numbers will influence the Fed rate path, accompanied by FOMC member commentary, including remarks from Fed Chair Powell.

The Euro

Tuesday’s release of German consumer climate figures for April could alter the outlook for the EUR/USD pair, with attention also on Thursday’s retail sales and unemployment data from Germany. Preliminary inflation numbers for France and Italy on Friday will further influence market sentiment towards a potential ECB rate cut.

The Pound

Thursday’s finalized Q4 GDP figures may impact buyer appetite for the Pound, while Bank of England Monetary Policy Committee member Catherine Mann’s remarks on Monday will offer insights into inflation and the likelihood of a BoE rate cut.

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The Loonie

Market risk sentiment and crude oil prices will sway the Loonie, although no significant economic indicators are slated for release from Canada.

The Australian Dollar

Tuesday’s consumer sentiment numbers will be watched closely, with CPI monthly indicator on Wednesday and Australian retail sales figures for February on Thursday shaping demand for the Aussie dollar. March’s less hawkish RBA stance could be reevaluated if there’s a notable increase in household spending.

The Kiwi Dollar

The Kiwi dollar’s near-term trajectory hinges on market risk sentiment and commodity price movements, with no major economic indicators from New Zealand.

The Japanese Yen

Bank of Japan Monetary Policy Meeting Minutes on Monday may not greatly impact the Japanese Yen, but inflation, unemployment, and retail sales data on Friday will be closely monitored. A pickup in demand-driven inflationary pressures could test expectations of the BoJ holding rates at zero.

China

No economic indicators are expected from China, but developments may still influence global market sentiment.

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