The US dollar rose sharply against the Japanese yen in a war of the safe havens during trading on Thursday.
The greenback’s rise was fuelled in large part by a release of US gross domestic product (GDP) data which revealed an annualised growth rate of 2.6%.
This, in turn, knocked Treasury yields higher – and led to a sharp rise for the dollar.
The dollar went up by 0.3% in comparison to the yen, meaning it sat at 111.17. This was its best position since mid-to-late December 2018.
The US dollar index, which is a tool used to assess how well the currency is performing compared to six others, went up 0.1% to 96.250.
Elsewhere, the Australian dollar managed to pull back up a little following a period of negativity. In the AUD/USD pair, it was recorded at $0.7093.
Its lows in the past few days came as a result of a poor data release covering Chinese manufacturing. The Australian and Chinese economies are closely linked as a result of trading relationships, and poor Chinese data can often affect the Australian dollar.
The single European currency managed to remain stable at $1.1371.
As the current trading week winds its way to a close, it’s time to look ahead to next week to see what’s in store for the forex markets.
On Monday, the first main event of the day will be an Australian data release covering building permits in January. Month on month, this was last recorded at -8.4%.
Later in the day, there will be a producer price index release out of Europe covering February. This was last recorded at a year on year position of 3%.
US construction spending for the month of December will be out at 3pm GMT. Month on month, this is expected to show a change from 0.8% to 0.2%.
Looking ahead to Tuesday, the Reserve Bank of Australia’s rate statement for the month of March is due out at 3.30am GMT. It is forecast by analysts that this will remain steady at 1.5%.
French trade balance data for January is due out at 7.45am GMT. This was last recorded at -€4.65 billion.
There’ll be more central banking action later in the day as Bank of England governor Mark Carney speaks at 3.35pm GMT.
There will also be a speech from the Reserve Bank of Australia’s Governor Philip Lowe at 10.10pm GMT, which is likely to focus in part on the rate decision from earlier in the day.
On Wednesday, there will be more focus on Australia as the country’s gross domestic product data for the fourth quarter of the year is released at 12.30am GMT. Quarter on quarter, this was last recorded at 0.3%.
The Bank of Canada will release its interest rate statement at 3pm GMT. This is expected to remain steady at 1.75%.
By 7pm GMT, the US Federal Reserve will have released its Beige Book – a report compiled with input from each of the Federal Reserve districts and designed to shed some light on how the US economy is performing.