Forex Today: Market focus shifts to key macroeconomic data releases from US
Here is what you need to know on Thursday, February 27:
The US Dollar (USD) stays resilient against its peers in the European morning on Thursday as market participants gear for key data releases. The US economic calendar will feature Durable Goods Orders and Pending Home Sales figures for January, alongside the weekly Initial Jobless Claims report. Additionally, the US Bureau of Economic Analysis will release revisions to the fourth quarter Gross Domestic Product (GDP) growth.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.24% | 0.06% | 0.84% | 0.95% | 1.01% | -0.22% | |
| EUR | 0.09% | -0.24% | -0.05% | 0.74% | 1.03% | 0.91% | -0.30% | |
| GBP | 0.24% | 0.24% | 0.26% | 0.98% | 1.27% | 1.16% | -0.06% | |
| JPY | -0.06% | 0.05% | -0.26% | 0.79% | 0.98% | 1.04% | -0.18% | |
| CAD | -0.84% | -0.74% | -0.98% | -0.79% | 0.06% | 0.17% | -1.05% | |
| AUD | -0.95% | -1.03% | -1.27% | -0.98% | -0.06% | -0.12% | -1.31% | |
| NZD | -1.01% | -0.91% | -1.16% | -1.04% | -0.17% | 0.12% | -1.20% | |
| CHF | 0.22% | 0.30% | 0.06% | 0.18% | 1.05% | 1.31% | 1.20% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The risk-averse market atmosphere helped the USD hold its ground midweek. During the American trading hours, US President Donald Trump said Canada and Mexico tariffs will go into effect on April 2nd and added that they will impose tariffs on EU imports. Trump noted that they will share details on EU tariffs soon but hinted that they are likely to be 25% on autos and some other imports. Trump is scheduled to hold a press conference with British Prime Minister Keir Starmer at 19:00 GMT on Thursday. Several Federal Reserve (Fed) policymakers will also be speaking in the second half of the day.
EUR/USD lost nearly 0.3% on Wednesday. The pair struggles to stage a rebound in the European morning and stays well below 1.0500. Later in the session, the European Commission will publish Consumer Confidence, Business Climate and Economic Sentiment Indicator data for February. Moreover, the European Central Bank will publish the Monetary Policy Meeting Accounts.
After climbing to a multi-month high above 1.2700, GBP/USD reversed its direction and erased the majority of its daily gains to close marginally higher. The pair stays on the back foot early Thursday and declines toward 1.2650.
Following Tuesday's sharp decline, Gold failed to attract buyers on Wednesday and ended the day flat. XAU/USD stays under bearish pressure early Thursday and trades near $2,890.
USD/JPY struggles to find direction and moves sideways below 149.50 for the second consecutive day on Thursday. In the early trading hours of the Asian session on Friday, Tokyo Consumer Price Index data for February, Industrial Production and Retail Trade figures for January from Japan will be watched closely by market participants.
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
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