The Japanese yen rose slightly against the US dollar in early trading after relatively strong economic data from Japan. According to the statistics agency, the country’s exports rose by 6.6% in January, an increase from the previous month’s increase of 2.0%. In the same period, imports declined by 9.5%, leading to a trade deficit of more than ¥300 billion. Further data showed that the country’s core machinery orders rose by 11.8% in December. These numbers came two days after the bureau published relatively strong GDP numbers.

The British pound declined against the US dollar during the American session ahead of the important UK inflation numbers that will come out at 07:00 GMT. Economists polled by Reuters expect the data to show that the headline CPI declined by 0.4% in January after rising by 0.3% in the previous month. They expect the CPI and core CPI to rise by 0.6% and 1.6%, respectively. The agency will also publish the country’s retail price index and the producer price index data.

The US dollar bounced back during the American session as traders continued to watch ongoing deliberations over the stimulus package. Today, the currency will react to the important US retail sales numbers that will come out in the afternoon session. Economists expect the data to reveal that the headline and core retail sales rose by 1.1% and 1.0%, respectively. Elsewhere, in Canada, the statistics office will publish the latest inflation numbers.

EUR/USD

The EUR/USD pair retreated yesterday after reaching a high of 1.2170. It is trading at 1.2090, which is slightly below the 15-day and 25-day exponential moving averages. It is also slightly above the important support at 1.2080, which was at the lowest level on February 12. The RSI and MACD have also moved relatively lower. Therefore, the pair may continue falling as bears target the next support at 1.2050.

GBP/USD

The GBP/USD pair declined to an intraday low of 1.3885 yesterday. On the four-hour chart, the pair has formed an ascending channel that is shown in white. The current price is slightly below the upper side of this channel. The signal line of the MACD has crossed the histogram while the Relative Vigor Index (RVI) have moved below the neutral line. Therefore, the pair will likely experience some volatility before and after the UK inflation numbers.

BTC/USD

The BTC/USD rallied to above 50,000 for the first time on record. On the four-hour chart, the pair is sightly above the 25-day and 15-day exponential moving averages (EMAs). The Moving Average of the Oscillator has moved below the neutral line while the RSI is slightly below the overbought level. Therefore, the pair may continue rising as bulls target the next resistance at 51,000.