Here is what you need to know on Monday, February 13:
Markets remain risk-averse early Monday as investors keep an eye on geopolitics while refraining from taking large positions ahead of this week's key events. In the absence of high-tier data releases, risk perception should continue to drive the market action in the remainder of the day.
On Friday, the data published by the University of Michigan revealed that the year-ahead inflation expectation component of the Consumer Sentiment Survey rose to 4.2% in early February from 3.9% in January. This data helped the US Dollar preserve its strength against its rivals late Friday and the US Dollar Index (DXY) closed the second straight week in positive territory. In the European morning, DXY clings to small daily gains near 103.70 and the benchmark 10-year US Treasury bond yield holds steady above 3.7%. Reflecting the cautious mood, US stock index futures are down between 0.25% and 0.35%.
Meanwhile, the US military reportedly shot down an unidentified object, the third one since the downing of the Chinese balloon, flying above Michigan on Sunday.
EUR/USD lost over 100 pips last week and stays in a consolidation phase below 1.0700 on Monday. On Tuesday, Eurostat will publish the Employment Change and Gross Domestic Product data for the fourth quarter.
Following last week's sharp decline, GBP/USD moves sideways at around 1.2050 to start the week.
AUD/USD holds steady slightly above 0.6900. In the early trading hours of the Asian session on Tuesday, National Australia Bank's Business Confidence data will be watched upon for fresh impetus alongside Westpac Consumer Confidence Index.
Despite the broad-based US Dollar strength, USD/CAD fell over 100 pips on Friday. The monthly data published by Statistics Canada showed that Net Change Employment was up 150,000 in January, compared to the market expectation of 15,000, and provided a boost to the Canadian Dollar.
Following Friday's volatile action, USD/JPY gathered bullish momentum early Monday and was last seen trading near 132.20, where it was up more than 0.5% on a daily basis. Reuters reported on Monday that Japan's Upper House of Parliament has scheduled confirmation hearings on government nominees for the new Bank of Japan (BoJ) governor and his two deputies on February 27. Markets widely expect the Japanese government to formally nominate Kazuo Ueda on Tuesday, February 14.
Pressured by rising US Treasury bond yields, Gold price stayed on the back foot ahead of the weekend and failed to stage a rebound. In the early European morning, XAU/USD fluctuates in a tight range slightly above $1,860.
Bitcoin stayed relatively quiet over the weekend but ended the second straight week in negative territory, losing around 5%. BTC/USD trades up and down in a narrow channel below $22,000 early Monday. Ethereum stays in a consolidation phase and trades at around $1,500.
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: Buyers retake 0.6350 after Chinese GDP data
AUD/USD picks up fresh bids and retakes 0.6350 in Asian trading on Wednesday. The pair finds fresh demand after Chinese Q1 GDP beat estimaes with 5.4% YoY while Retail Sales and Industrial Production data also exceeded expectations. However, the further upside could be capped by US-China trade woes ahead of Powell.
Gold price hangs close to all-time highs at $3,275
Gold price holds the advannce to record another all-time high at $3,275 per troy ounce in the Asian session on Wednesday. Safe-haven demand amid US President Donald Trump's uncertain tariff plans, softer US Dollar and prospects of further easing by the Federal Reserve provide some support to the yellow metal.
USD/JPY stays pressured toward 142.50 amid renewed US Dollar selling
USD/JPY turns south toward 142.50 and remains close to a multi-month low touched last week. Tariff-driven uncertainty continued to weigh on the US Dollar. Adding to this hope for a US-Japan trade deal, the divergent BoJ-Fed policy expectations and a softer risk tone underpin the safe-haven Japanese Yen.
Binance and KuCoin traders panic as Amazon Web Service outage halts Crypto withdrawals
On Monday, a technical outage from Amazon Web Services temporarily halted operations at top cryptocurrency exchanges, including Binance and KuCoin. The outage disrupted withdrawals and trading services, sparking major concerns among cryptocurrency traders.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.