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Forex Today: Markets now shift the attention to PMIs

The Greenback remained slightly on the back foot on Wednesday amidst alternating risk appetite trends and the lack of surprises from the FOMC Minutes, while bets on the potential timing of the first rate cut by the Fed continued to dominate the broad sentiment.

Here is what you need to know on Thursday, February 22:

The USD Index (DXY) traded with tepid losses around the 104.00 region against the backdrop of further advances in risk-linked assets. It is PMI day across the board on February 22, while the usual weekly Initial Jobless Claims are also due along with Existing Home Sales, and the Chicago Fed National Activity Index. In addition, FOMC’s Cook, Kashkari, Jefferson, and Harker are due to speak.

EUR/USD maintained its gradual bullish view and rose further north of the 1.0800 hurdle. On February 22, advanced PMIs in Germany and the broader Euroland are expected, seconded by the ECB Accounts and the final Inflation Rate in the euro bloc.

GBP/USD added to Tuesday’s gains and looked to consolidate the move beyond 1.2600 the figure. Preliminary PMIs will be the only releases of note across the Channel on February 22.

USD/JPY kept its multi-session consolidative phase well and sound around the 150.00 zone. In Japan, weekly Foreign Bond Investment readings are scheduled for February 22.

AUD/USD alternated gains with losses in the upper end of the range, an area coincident with the key 200-day SMA around the 0.6560 region. Flash Judo Bank PMIs are due Down Under on February 22.

The resurgence of the tight supply narrative lent support to the prices of WTI, which flirted once again with the $78.00 mark per barrel.

Gold prices advanced modestly to the $2,030 region, maintaining their positive streak in place. In the opposite direction, Silver prices extended their leg lower for the third consecutive day.

Author

Pablo Piovano

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

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