Forex Today: Markets kept the side-lined mood

Pablo Piovano FXStreet

Alternating risk appetite trends dominated the sentiment in the FX universe amidst steady speculation of a Fed rate cut in May, rising geopolitical concerns, and some remarks hinting at the idea that the ECB is in no rush to start cutting rates.

Here is what you need to know on Friday, February 9:

The greenback regained some poise and encouraged the USD Index (DXY) to stay afloat above the 104.00 mark amidst further repricing of an interest rate cut by the Fed in May. On Friday, Dallas Fed L. Logan will be the only spot on the US docket.

EUR/USD advanced marginally and managed to keep the trade in the upper end of the weekly range in the 1.0770/80 band. In the domestic calendar, the final Inflation Rate in Germany will be in the spotlight on Friday.

GBP/USD reversed its two-day advance and retreated modestly on Thursday, although it managed well to maintain the region above 1.2600 the figure.

Dovish comments from BoJ’s Uchida weighed heavily on the Japanese yen and boosted USD/JPY to new yearly highs north of the 149.00 barrier, amidst humble gains in the US Dollar and higher yields.

AUD/USD added to Wednesday’s losses and dropped markedly to the sub-0.6500 zone, as further deflationary forces in China, negative price action in the commodity complex, and the somewhat stronger dollar were all too much for the Aussie Dollar.

In China, the flash Q4 Current Account will be in the pipeline on Friday. In the meantime, USD/CNH extended the weekly bounce and flirted with the 7.2200 zone.

Unabated geopolitical concerns and the positive weekly report from the EIA sustained the intense march north in prices of the WTI past the $76.00 mark per barrel.

Gold prices declined modestly to the $2030 region per troy ounce, while Silver prices rebounded sharply to three-day highs around $22.60 per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.