Weekly outlook: US Dollar steadies near 96.80 before PCE data and Fed remarks.

The US Dollar (USD) posted notable weekly losses, briefly rebounding after stronger-than-expected US jobs data showed 130K new positions added in January and the Unemployment Rate dipping to 4.3% from 4.4%. However, softer January CPI figures pressured the currency.

The US Dollar Index (DXY) slipped to around 96.80 from 97.15 highs as weak inflation data boosted expectations of a Federal Reserve rate cut later this year. Attention now turns to Friday’s release of the December Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation measure.

EUR/USD hovers around 1.1880, erasing earlier losses after Eurozone flash Q4 GDP came in at 1.4% YoY, above the 1.3% forecast. Focus next week includes the Eurogroup Meeting and December Industrial Production on Monday, followed by the EcoFin Meeting and February Eurozone and German ZEW Surveys on Tuesday.

AUD/USD trades near 0.7080, close to a three-year peak, supported by the hawkish stance of the Reserve Bank of Australia. Upcoming data include NAB Business Confidence and the Wage Price Index on Wednesday, then Australian jobs figures and the February flash S&P Global Composite PMI on Thursday.

USD/CAD sits near 1.3600, recovering nearly half of its weekly losses after US inflation data. Markets will watch Canada’s December Retail Sales on Friday.

USD/JPY trades around 152.80 following a sharp sell-off triggered by the election victory of Sanae Takaichi, which raised fiscal policy concerns. Japan’s National CPI is due on Thursday.

GBP/USD holds near 1.3650, with UK Producer Price Index and Retail Price Index data due Wednesday, and Retail Sales scheduled for Friday.

Gold trades around $5,038, rebounding from Thursday’s drop but still below January’s record high of $5,598, as easing geopolitical tensions push investors toward riskier assets.

Looking ahead to the economic outlook: Key voices take center stage.

Saturday, February 14

• Christine Lagarde (ECB President)

Sunday, February 15

• Christine Lagarde (ECB President)

Monday, February 16

• Michelle Bowman (Fed)
• Joachim Nagel (ECB)

Tuesday, February 17

• José Luis Escrivá (ECB)
• Michael Barr (Fed)
• Mary Daly (Fed)

Wednesday, February 18

• Piero Cipollone (ECB)
• Isabel Schnabel (ECB)
• Michelle Bowman (Fed)

Thursday, February 19

• Piero Cipollone (ECB)
• Luis de Guindos (ECB)
• Raphael Bostic (Fed)
• Michelle Bowman (Fed)
• Neel Kashkari (Fed)
• Christian Hawkesby (rbnz official)

Friday, February 20

• Christine Lagarde (ECB President)
• Raphael Bostic (Fed)

Central bank meetings and upcoming economic data releases are set to guide the next moves in monetary policy.

Sunday, February 15

• Japan flash Q4 GDP

Tuesday, February 17

• Reserve Bank of Australia (RBA) Meeting Minutes
• Germany January Harmonized Index of Consumer Prices (HICP)
• UK January Claimant Count Change
• UK December Employment Change
• UK December ILO Unemployment Rate
• Canada January CPI

Wednesday, February 18

• Reserve Bank of New Zealand (RBNZ) Interest Rate Decision
• UK January CPI
• Federal Open Market Committee (FOMC) Minutes

Thursday, February 19

• Australia January Employment Change
• Australia Unemployment Rate

Friday, February 20

• UK January Retail Sales
• Germany February flash HCOB Composite PMIs
• Eurozone PMIs
• UK flash February S&P Global PMIs
• US December Core Personal Consumption Expenditures (PCE)
• US February S&P Global PMIs

Sources: Agustin Wazne