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Here is what you need to know on Thursday, February 12:
The US recently unveiled a rather robust Nonfarm Payrolls report for January, adding 130K jobs. This promising start to the year saw the Unemployment Rate dip to 4.3%, while Average Hourly Earnings remained steady at a 3.7% increase over the past year.
Meanwhile, the US Dollar Index (DXY) finds itself trading around the 96.80 level, slightly subdued despite the stellar jobs report. Dovish expectations surrounding the Federal Reserve’s (Fed) actions for the latter half of the year continue to weigh on market sentiment.
US Dollar Price Today
Below is a table depicting the percentage change of the US Dollar (USD) against major currencies today. Notably, the US Dollar proved strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | – | 0.10% | 0.06% | -0.96% | 0.05% | -0.85% | -0.22% | 0.30% |
| EUR | -0.10% | – | -0.05% | -1.09% | -0.05% | -0.94% | -0.33% | 0.20% |
| GBP | -0.06% | 0.05% | – | -1.04% | -0.00% | -0.90% | -0.28% | 0.24% |
| JPY | 0.96% | 1.09% | 1.04% | – | 1.04% | 0.12% | 0.79% | 1.30% |
| CAD | -0.05% | 0.05% | 0.00% | -1.04% | – | -0.91% | -0.26% | 0.22% |
| AUD | 0.85% | 0.94% | 0.90% | -0.12% | 0.91% | – | 0.62% | 1.15% |
| NZD | 0.22% | 0.33% | 0.28% | -0.79% | 0.26% | -0.62% | – | 0.53% |
| CHF | -0.30% | -0.20% | -0.24% | -1.30% | -0.22% | -1.15% | -0.53% | – |
The heat map illustrates percentage changes of major currencies against each other. Base currencies are selected from the left column, while quote currencies are from the top row. For instance, selecting USD as the base and JPY as the quote shows the percentage change in that pairing.
In other news, USD/JPY is trading near the 152.80 region, touching a two-week low. This follows Prime Minister Sanae Takaichi’s decisive election victory. Interestingly, the AUD/USD pair is around the 0.7130 level, marking a three-year high. The Australian Dollar is buoyed by China’s Consumer Price Index (CPI) data, as China remains Australia’s main trading partner.
EUR/USD hovers close to the 1.1880 price zone, retreating from a one-week peak achieved on Tuesday. However, it has managed to trim some losses following the recent NFP release.
On the other hand, GBP/USD remains fairly stable, trading near 1.3640, as markets anticipate the UK’s flash Gross Domestic Product (GDP) figures due Thursday.
Interestingly, Gold prices are flirting near the $5,092 mark, showing a slight uptick while disregarding the US jobs data.
What’s next on the docket:
Thursday, the 12th:
- UK flash Gross Domestic Product (GDP) (Q4).
Friday, the 13th:
- RBNZ Inflation Expectations (Q1).
- Swiss January CPI.
- Eurozone flash GDP (Q4).
- US January CPI.
Gold FAQs
Gold holds a storied role in human history as both a store of value and a medium of exchange. Beyond its lustrous appeal and jewellery usage, Gold is a renowned safe-haven asset. Thus, it’s considered a prudent investment during turbulent times. Furthermore, Gold serves as a hedge against inflation and currency depreciation, as it doesn’t rely on any specific issuer or government.
Central banks are the largest gold custodians. In times of economic unrest, they diversify reserves by acquiring Gold, which can instil confidence in a nation’s economic stability. As reported by the World Gold Council, central banks added about 1,136 tonnes of Gold, valued at $70 billion, to their reserves in 2022—a record yearly purchase. Emerging economies like China, India, and Turkey are notably increasing their Gold reserves.
There’s an inverse correlation between Gold and the US Dollar and US Treasuries, both significant reserve and safe-haven assets. When the Dollar falters, Gold typically appreciates, allowing investors and central banks to diversify assets during volatile periods. Moreover, stock market rallies often dampen Gold prices, while downturns typically bolster them.
Gold’s price is influenced by a plethora of factors. Geopolitical tensions or recession fears can swiftly elevate its price, given its safe-haven allure. As a yield-less asset, Gold generally rises with declining interest rates, whereas higher rates tend to suppress its value. Additionally, the US Dollar’s strength or weakness plays a pivotal role, as Gold is traded in dollars (XAU/USD). A robust Dollar suppresses Gold, while a weaker Dollar can buoy its price.
