Forex Today: US Dollar stays under pressure as mood improves

Here is what you need to know on Thursday, February 13:

The US Dollar (USD) struggles to find demand early Thursday after having failed to capitalize on January inflation data on Wednesday. The European economic calendar will feature Industrial Production data for December. Later in the day, January Producer Price Index (PPI) data from the US will be watched closely by market participants, who will also be awaiting new headlines surrounding US President Donald Trump's trade policy.

The US Bureau of Labor Statistics announced on Wednesday that the annual Consumer Price Index (CPI) rose by 3% in January, coming in above the market expectation and December's increase of 2.9%. Meanwhile, the core CPI rose by 0.4% on a monthly basis, following the 0.2% rise recorded in the previous month. With the immediate reaction, the USD gathered strength against its rivals. The improving risk mood, however, caused the USD to lose its footing later in the American session. 

President Trump said that he had a "lengthy and highly productive" phone call with Russian President Vladimir Putin to begin negotiations to end the war in Ukraine. In the meantime, Trump refrained from announcing reciprocal tariffs. According to CNBC, Trump could still unveil his reciprocal tariff plan before he meets with Indian Prime Minister Narendra Modi on Thursday. After closing marginally lower on Wednesday, the USD Index continues to push lower and was last seen near 107.50.

The UK's Office for National Statistics reported on Thursday that the Gross Domestic Product (GDP) expanded at an annual rate of 1.4% in the fourth quarter. This reading came in above the market expectation for an expansion of 1.1%. GBP/USD gathers bullish momentum following the upbeat data and trades above 1.2500.

The Bank of Canada's (BoC) Meeting Minutes showed late Wednesday that impending trade tariffs from the United States (US) have become a key risk to policy guidance looking forward. "BoC Governing Council felt that retaliatory measures by Canada and other nations would put upward pressure on inflation," the document read. USD/CAD stays under bearish pressure and trades at its lowest level since mid-December near 1.4250 early Wednesday.

After falling toward 1.0300 with the immediate reaction to US inflation data on Wednesday, EUR/USD regained its traction and ended the day marginally higher. The pair continues to push up toward 1.0450 to begin the European session.

USD/JPY gathered bullish momentum on Wednesday, supported by rising US yields, and gained more than 1% on a daily basis. The pair stages a downward correction toward 154.00 early Thursday.

Gold fell toward $2,860 in the early American session on Wednesday but managed to erase its daily losses. XAU/USD holds its ground on Thursday and rises toward $2,920.