13/03/2026
Friday didn’t bring much excitement, but the USD managed to close higher for the first time in three weeks leading up to this week’s Fed meeting.
The USD strengthened notably after producer price inflation exceeded expectations, indicating rising costs.
FX volatility remained unusually low yesterday, evident from GBP’s performance, which was mirrored by EUR and USD.
The GBP experienced a slight decline by the day’s end after morning job figures hinted at a mild cooling in the UK’s employment sector. Meanwhile, the USD strengthened in the afternoon following higher-than-anticipated CPI data, indicating lingering inflationary pressures in the US.
A sense of caution surrounded GBP trading yesterday in anticipation of this morning’s job wage data, leading to profit-taking on last week’s gains. Meanwhile, USD strengthened in line with rising treasury yields.
The US dollar weakened broadly following Friday’s jobs report, which revealed a cooling labour market. While nonfarm payroll numbers showed an increase of 275,000 jobs in February.