Another solid print from the weekly report of the US labour market lent extra support to the Fed’s tighter-for-longer narrative, although the move in the Greenback was limited. Furthermore, room to the Greenback and sponsored a broad-based knee-jerk in the risk-complex, while the generalized upbeat flash readings from PMIs initially bolstered a spike in risk-related assets.
Here is what you need to know on Friday, February 23:
The USD Index (DXY) remained on the back foot amidst the multi-session negative streak, hovering around the 104.00 region along with some recovery in US yields. At the end of the week, only the speech by Fed’s C. Waller is due.
EUR/USD ran out of steam just ahead of 1.0900 the figure on the back of encouraging PMIs, although the late recovery in the Greenback forced spot to relinquish those gains. On February 23, Germany will be in the spotlight with the releases of the final Q4 GDP Growth Rate and the Business Climate tracked by the IFO institute.
GBP/USD traded in quite a volatile fashion, although it managed to clinch to daily gains and extend the weekly bounce for the third straight session. Across the Channel, the GfK Consumer Confidence will be only due on February 23.
USD/JPY added to Wednesday’s advance and climbed further north of the 150.00 milestones. The next event of note in Japan will be the release of January inflation figures on February 27.
In line with their risky peers, AUD/USD left behind the multi-session advance and gave away some gains after briefly flirting with the 0.6600 hurdle. Next on tap in Australia will be the RBA’s Monthly CPI Indicator on February 28.
In China, the House Price Index is due on February 23. USD/CNH managed to regain some balance and chart decent gains past the 7.2000 mark after two consecutive daily pullbacks.
WTI prices rose to the area of monthly highs near the $79.00 mark per barrel amidst rising geopolitical jitters and another unexpected build in US crude oil supplies.
Gold prices partially set aside several sessions of gains and settled around the $2,020 zone per troy ounce, while its cousin Silver retreated for the fourth day in a row, revisiting weekly lows near $22.70 per ounce.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady near 0.6250 ahead of RBA Minutes
The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Monday for some insight into the interest rate outlook.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold price bulls seem non-committed around $2,620 amid mixed cues
Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.