Forex Today: Fear firing up USD, JPY, Gold while Bitcoin bulls are back and critical data coming

A risk-off mood is dominating markets, boosting safe-haven assets.
Dovish central bankers weigh on currencies.
The calendar is packed with top-tier events including NFP hints.

Yohay Elam FXStreet

Here is what you need to know to start your day:

- Markets are dominated by a risk-averse mood. US 10-year yields are below 2% and USD/JPY is under pressure.
- Gold has reached new highs at $1,437, also enjoying safe-haven flows.
- EU leaders have nominated IMF MD Christine Lagarde to lead the ECB. She will likely continue Draghi's easing policies and may call governments to do more.
- The pound is under pressure after BOE Governor said that they will reassess the "sea change" in the global economy as a result of trade tensions. UK Services PMI will be closely watched after Construction PMI fell to the lowest in 10 years.*
- AUD/USD is holding up close to the highs amid upbeat Australian building approvals and a broad trade balance surplus.
- Oil prices are falling despite the OPEC-non-OPEC decision to extend production cuts.
- Bitcoin and other cryptocurrencies have recovered with BTC/USD topping $11,500.
- A busy day awaits traders with critical hints toward Friday's Non-Farm Payrolls. These include the ADP NFP, jobless claims, and the ISM Non-Manufacturing PMI.

See US Non-Farm Payrolls Preview: Three is not the charm

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.