The Currency analytics
By Julie Binoche
Dollar weakness hit Friday morning. The US Dollar Index slumped to 97.70 during Asian trading, pulling back from Thursday's gains as traders brace for key inflation data that…
PPI numbers drop later today. That's the Producer Price Index, and it's a big deal for dollar watchers.
The dollar's been all over the place recently, swinging on every hint about Fed policy changes. Traders can't seem to make up their minds about where rates are going.
Today's PPI release is crucial for the dollar's next move. If the numbers come in hot, expect the greenback to bounce back fast.
Fed officials aren't talking before the release. Smart move, really. They'll let the numbers speak, then probably weigh in later with their usual careful language about…
Thursday saw some wild action. The DXY hit 98.20 at one point before sliding back down. That came after jobless claims data showed fewer people filing for unemployment benefits.
The March 15 Fed meeting is already on everyone's radar. Whatever the PPI shows today will probably influence what the central bank does then.
Other currencies are reacting too. The euro gained some ground against the dollar Friday morning, trading around 1.1080. The yen stayed pretty steady though - no major moves there.
The British pound is wobbling around 1.2650 versus the dollar. That's after the Bank of England kept its cautious tone on rate changes.
China's yuan is feeling some pressure at 6.95 per dollar. The People's Bank of China just pumped liquidity into their banking system to keep things stable.
Australia's dollar is holding up better than expected at 0.7200. The country's strong exports are helping, but any big dollar moves after the PPI could flip that script fast.
Canada's loonie is steady at 1.3500 against the greenback. That's despite oil price swings, which usually move the Canadian dollar around.
The Reserve Bank of Australia meets next week. Many expect a rate decision that could hit the Aussie dollar hard.
India's rupee trades at 82.50 per dollar as the Reserve Bank of India watches domestic inflation.
The whole thing comes down to inflation expectations. If producer prices jump, it signals consumer inflation might follow.