The US Dollar remains firm as market participants brace for the upcoming Consumer Price Index (CPI) data, reflecting a tone of caution across financial markets. On Wednesday, February 14, 2024, global stock markets are anticipated to open lower due to prevailing nervousness. Trade war concerns are poised to limit any corrective slide for the safe-haven XAU/USD pair, as gold prices attract sellers for the second consecutive day.
Hawkish comments from Federal Reserve Chair Jerome Powell have revived demand for the US Dollar. President Donald Trump's plans to introduce reciprocal tariffs through executive action further support the currency. The EUR/USD trades steadily above 1.0350 during European trading hours, while GBP/USD maintains a modestly flat position near 1.2450.
Anticipation surrounds the release of the Consumer Price Index, expected to show an annual increase of 2.9% in January, identical to the previous month's reading. The core CPI is predicted to remain above the Federal Reserve's target at 3.1% compared to a year ago. These figures are closely watched as they may influence future monetary policy decisions.
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