Session Recap: USD recovers, US CPI eyed

FXStreet (Edinburgh) - The greenback is posting meagre gains vs. its main rivals on Thursday, managing to recover ground lost following the recent dovish tone from Janet Yellen in both her testimonies on Tuesday and Wednesday. The immediate focus of attention in the FX community will be today’s consumer prices in the US economy tracked by the CPI, expected to contract 0.1% on a yearly basis, back to the negative ground for the first time since 2009, with the descent in energy prices taking centre stage.

In the risk-associated space, the attention is now gyrating around the Bundestag vote on the recent Eurogroup-Greece deal on a 4-month loan extension, with dissenting voices already sounding in Germany. The euro and the sterling are trading on the back footing vs. the greenback, hovering over 1.1330 and retreating to the 1.5510 band, respectively.

Data wise, mixed results from the euro area have seen improvement in the M3 Money Supply, Private Loans, Economic Sentiment and Consumer Confidence. Across the Channel, the British economy expanded 2.7% on a yearly basis during Q4 and 0.5% inter-quarter, in line with previous estimates.