The US Retail Sales report expected to show a modest contraction in January is scheduled for release at 13:30 GMT today. This comes as the economic policies of the Trump administration begin to take shape, potentially influencing market dynamics. In recent developments, the US inflation report revealed a 3.0% rise in the main inflation measure, reaching a seven-month high. Despite this, the US dollar's initial rally on Wednesday afternoon was short-lived, as it later extended its downside.
Economists are closely monitoring these indicators as they assess the broader economic picture. The timing for the next Federal Reserve rate cut has been pushed back to October, reflecting a cautious approach in response to current economic conditions. Meanwhile, consumer demand remains robust, and wages continue to grow at a strong pace. However, President Trump's tariffs are likely to elevate imported prices, adding another layer of complexity to the economic landscape.
In the financial markets, BNB trading volume soared to 5.13 billion, with the long-to-short ratio reaching its highest level in over a month. The BNB price surged nearly 11% this week, trading around $680 on Friday. This rally indicates significant investor interest and confidence in the asset, despite broader market volatility.
Across the Atlantic, the Euro area GDP expanded by 0.1% in Q4, an improvement from the previous estimate of 0%. This modest growth underscores ongoing challenges faced by the region in achieving more substantial economic expansion. Nonetheless, the continued macroeconomic and interest rate divergence between the US and other regions would typically suggest more sustained dollar strength.