Here is what you need to know on Friday, February 24:
Although the US Dollar managed to stay resilient against its major rivals on Thursday, it seems to have lost its bullish momentum on the last trading day of the week. The US Bureau of Economic Analysis' (BEA) Personal Consumption Expenditures (PCE) Price Index data, the US Federal Reserve's preferred gauge of inflation, will be featured in the US economic docket alongside Personal Spending and Personal Income figures for February. January New Home Sales data and Fedspeak will also be watched closely by market participants.
US PCE Inflation Preview: Can the US Dollar turn bullish for good?
The BEA announced on Thursday that it revised the annualized real Gross Domestic Product (GDP) growth for the fourth quarter to 2.7% from 2.9%. On a positive note, weekly Initial Jobless Claims stayed below 200,000 for the sixth straight week, reminding investors of tight labor market conditions. The US Dollar Index (DXY) edged higher after this data but the improving market mood, as reflected by considerable gains in Wall Street's main indexes, limited the DXY's upside. Meanwhile, the benchmark 10-year US Treasury Bond yield lost nearly 1% on Thursday and declined below 3.9% early Friday.
US Core PCE Inflation Preview: US Dollar selling opportunity? Three reasons to expect a slide.
EUR/USD registered small losses on Thursday. The pair stays in a consolidation phase at around 1.0600 in the early European session. The data from Germany revealed that the GDP contracted by 0.4% on a quarterly basis in the fourth-quarter, compared to the initial estimate of -0.2%.
Following some fluctuations during the Asian trading hours, USD/JPY holds steady below 135.00 in the European morning. Incoming Bank of Japan (BoJ) Governor Kazuo Ueda said on Friday that the weak Japanese Yen was good for exports, inbound tourism and some service sectors. Ueda, however, also acknowledged that the weak Yen was impacting household negatively. "We would need to normalize policy if inflation makes headway towards 2% target," Ueda further noted.
GBP/USD closed the second straight in negative territory on Thursday but managed to hold above 1.2000. The pair stays relatively quiet early Friday.
Gold price touched its lowest level of 2023 below $1,820 on Thursday but erased its daily losses amid retreating US T-bond yields. XAU/USD moves sideways at around $1,825 on Friday.
Bitcoin declined for the third straight day on Thursday and continued to edge lower early Friday. BTC/USD was last seen trading at around $23,900. Ethereum registered small losses on Thursday but lost its recovery momentum near $1,700. In the European morning on Friday, ETH/USD trades flat on the day at $1,650.
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
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.