Forex Today: Turmoil in bond markets

FXStreet Team FXStreet

What you need to know on Friday, February 26:

The greenback was under pressure throughout the first half of the day, but got a boost mid-US afternoon from a Treasury auction, turning higher against most of its major rivals.

The 7-year bond was auctioned at 1.19% vs 1.14% ahead of the event, pushing the yield on the benchmark 10-year US Treasury to 1.614%, a level last seen before the pandemic hit the US. By the end of the day, it stood at 1.49%.

US indexes plummeted post-bond-auction, with the Nasdaq trading over 3% lower at some point. Indices bounced just modestly ahead of the close but closed in the red.

The EUR/USD pair hit 1.2242 but settled around 1.2180. GBP/USD settled near a daily low of 1.3999. Commodity-linked currencies retreated from fresh multi-year highs, with AUD/USD touching 0.8006 and USDCAD 1.2467.

UK´s chief medical officials recommended downgrading the coronavirus alert level as pressure on the health system recedes.

Gold fell to a fresh 2021 low of $ 1,760.55 a troy ounce amid yields’ madness. Crude oil prices were immune to market’s turmoil, with WTI ending the day little changed at around $ 63.40 a barrel.

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EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.