Here’s everything you should know about forex Thursday, February 22:
The US Dollar lost traction in Forex market during Asian trading hours on Thursday, falling below 104.00. Pushed by improved risk sentiment. Participants will closely watch the HCOB Manufacturing. And Services PMIs for Germany and the Eurozone, the S&P Global/CIPS PMIs for the United Kingdom, and the S&P Global PMIs for the United States.
According to the Federal Reserve’s January policy meeting minutes. Most policymakers recognized the risks of acting too soon to loosen policy and underlined the significance of carefully reviewing incoming data in determining whether inflation is moving down stably to 2%.”Officials highlighted: “Uncertainty about how long the restrictive policy stance would be necessary,” the publication added. Although the USD rose in response to the immediate reaction, it quickly lost its gains as risk flows began to dominate the financial markets around the end of day. Nasdaq futures are up more than 1.5% early Thursday after Nvidia’s earnings topped expectations. Meanwhile, the benchmark 10-year US Treasury note yield has remained stable at roughly 4.3%, after climbing slightly on Wednesday.
Market movement in Pairs.
The EURUSD gained bullish momentum and rose to 1.0850 early Thursday, reaching its highest level in nearly three weeks. PMI surveys from the Eurozone and Germany are expected to reveal a continued drop in private sector business activity in early February.
GBP/USD continues to push higher after completing the previous two days in positive territory, and was last seen trading just above 1.2650.
According to data from Australia released on Thursday, the Judo Bank Composite PMI rose to 51.8 in February’s flash estimate from 49 in January, indicating a rise in growth momentum in the private sector. Following this data, AUD/USD gained traction and moved closer to 0.6600.
Jibun Bank Services PMI dropped to 52.5 from 53.1 in Japan, while Manufacturing PMI fell to 47.2 from 48. Despite the overall USD weakening, the USDJPY remains relatively solid above 150.00 following dismal PMI numbers.
USDCAD fell somewhat on Wednesday before dropping drastically to the 1.3450 level in the Asian session on Thursday. Statistics Canada will provide retail sales data. for December later in the day.
Gold did not profit from the selling pressure surrounding the USD and finished almost flat on Wednesday. Although XAUUSD is clinging to tiny gains at about $2,030 early Thursday, the durability of US Treasury bond yields limits the pair’s potential.
