Swing Trades: EUR/USD

Dukascopy Bank Team Dukascopy Bank SA

EUR/USD: US Durable Goods Orders

Durable goods orders report was one of the weakest currency triggers on Tuesday; in fact, it could not compete with the Fed Chair Powell testimony, making the overall sentiment hovering in limbo. The Euro fell against the Greenback by 12 base points, or 0.10%, however, bears stepped in half an hour earlier, pushing the price down to 1.2287 level.

The Commerce Department said that the US durable goods plummeted 3.7% for the month of January. The drop occurred because the demand for transportation equipment tumbled 10.0%, reaching a six-month low, following a 2.6% increase in the prior month. Technical analysts anticipated the EUR/USD pair to go up, however, the news from the Fed reversed the expectations.

EUR/USD: US CB Consumer Confidence

The EUR/USD currency pair declined on the back of a stronger-than-anticipated CB consumer confidence report released on Tuesday. The Euro plummeted against the Greenback by 13 base points, or 0.11%, to the 1.2260 level.

The US consumer confidence strengthened over the course of February, surpassing the forecast by 4.6 points, following the downwardly-revised 124.3-point reading recorded in the prior month. Consumer confidence reached its highest mark since November 2000. The improvement in the aspect of labor force was the main reason for this boost, the Conference Board's Director of Economic Indicators Lynn Franco said. This move coincided with the positive Fed Chair Powell's testimony.

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EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.