Forex Today: Markets kept the side-lined mood

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.