Here is what you need to know on Monday, February 24th:
- The American dollar edged lower at the end of the week, amid dismal US data triggering profit-taking. Business output contracted in the country for the first time since 2013. The greenback’s bullish trend remains in place, as the movements seem corrective.
- Coronavirus possible effects on global economic growth kept the mood depressed. Global equities closed in the red, while the yield on the benchmark US 30-year Treasury note fell to a record low of 1.89%. Fears of a recession hit Japan and the US.
- The EUR/USD pair has finished the week around 1.0850, the 23.6% retracement of its latest daily slump. The advance seems corrective, and chances of additional gains are limited.
- The GBP/USD pair bounced from a fresh yearly low, remains sub-1.30. UK manufacturing output unexpectedly soared. The EU and the UK set to start trade talks in March, Brexit to return to the spotlight.
- The Aussie remains among the weakest, as the Australian economy is being hit by Chinese jitters.
- The Japanese yen recovered just modestly after collapsing in the previous days, amid fears of a technical recession in Japan.
- Gold prices soared, with spot reaching a fresh multi-year high of $1,649,21 a troy ounce.
- Crude oil prices edged higher for a second consecutive week but closed Friday in the red. Saudi Arabia is weighing a break-up of the oil production alliance with Russia amid disagreements over the coronavirus outbreak's potential impact on the global oil demand.
- Cryptocurrencies advanced on Sunday, poised to extend gains this week.
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EUR/USD stays in daily range slightly below 1.0900
EUR/USD continues to move up and down in a narrow band slightly below 1.0900 in the second half of the day on Monday. The modest improvement seen in risk mood makes it difficult for the US Dollar to find demand and helps the pair stay in range.
GBP/USD treads water above 1.2900 amid risk recovery
GBP/USD is keeping its range play intact above 1.2900 in the American session on Monday. The positive shift seen in risk sentiment doesn't allow the US Dollar to gather strength and helps the pair hold its ground ahead of this week's key data releases.
Gold extends slide below $2,400
Gold stays under persistent bearish pressure after breaking below the key $2,400 level and trades at its lowest level in over a week below $2,390. In the absence of fundamental drivers, technical developments seem to be causing XAU/USD to stretch lower.
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
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The US Dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.