Here is what you need to know on Friday, February 23:
After dropping to its weakest level in three weeks, the US Dollar (USD) Index staged a rebound amid rising Treasury bond yields and closed flat on Thursday before stabilizing near 104.00 early Friday. IFO business sentiment survey for Germany will be featured in the European economic docket. Investors will also pay close attention to comments from central bankers.
The risk rally that was fuelled by surging technology stocks caused the USD to weaken against its major rivals on Thursday. The Dow Jones Industrial Average rose 1.2%, the S&P 500 gained 2.1% to close at a new all-time high of 5,087 and the Nasdaq Composite was up nearly 3%. Later in the American session, however, the benchmark 10-year US yield climbed to its highest level since late November at 4.35% and helped the currency erase its daily losses. In the European morning, the 10-year yield holds steady at around 4.33% and US stock index futures trade virtually unchanged on the day.
US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.38% | -0.39% | 0.03% | -0.47% | 0.37% | -1.00% | 0.01% | |
| EUR | 0.37% | -0.02% | 0.40% | -0.13% | 0.74% | -0.62% | 0.38% | |
| GBP | 0.39% | 0.01% | 0.41% | -0.11% | 0.76% | -0.61% | 0.40% | |
| CAD | -0.02% | -0.40% | -0.41% | -0.50% | 0.34% | -1.02% | -0.01% | |
| AUD | 0.49% | 0.10% | 0.08% | 0.52% | 0.86% | -0.50% | 0.50% | |
| JPY | -0.36% | -0.75% | -0.72% | -0.35% | -0.84% | -1.37% | -0.36% | |
| NZD | 0.99% | 0.62% | 0.60% | 1.01% | 0.52% | 1.35% | 1.00% | |
| CHF | -0.01% | -0.38% | -0.40% | 0.01% | -0.48% | 0.35% | -1.01% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
The data from the US showed on Thursday that Initial Jobless Claims declined to 201,000 in the week ending February 17 from 213,000 in the previous week. Additionally, S&P Global Composite PMI came in at 51.4 in February's flash estimate, highlighting an ongoing expansion in the private sector's business activity.
EUR/USD came within a touching distance of 1.0900 on Thursday but made a sharp U-turn to close the day flat. Nevertheless, the pair holds steady above 1.0800 in the early European session on Friday.
GBP/USD advanced above 1.2700 for the first time in three weeks on Thursday. As the USD recovered later in the day, the pair erased a large portion of its daily gains but settled above 1.2650.
USD/JPY closed in positive territory for the second consecutive day on Thursday. Early Friday, the pair fluctuates in a narrow channel at around 150.50.
After spending the majority of the day near $2,030, Gold lost its traction and retreated toward $2,020 on Thursday, pressured by rising US yields. XAU/USD consolidates its losses at around $2,020 in the European morning.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0800 ahead of Eurozone GDP, US inflation data
EUR/USD stays in positive territory above 1.0800 after registering its highest daily close in over a month on Tuesday. Investors await first-quarter GDP data from the Euro area and April Consumer Price Index data from the US.
GBP/USD closes in on 1.2600, all eyes on US CPI data
GBP/USD continues to stretch higher toward 1.2600 early Wednesday after closing in positive territory on Tuesday. The US Dollar struggles to find demand and allows the pair to hold its ground ahead of April CPI and Retail Sales report.
Gold consolidates gains near $2,360 as focus shifts to US CPI
Gold holds steady at around $2,360 in the early European session on Wednesday after gaining nearly 1% on Tuesday. The benchmark 10-year US Treasury bond yield stays in the red below 4.5% ahead of US inflation data, helping XAU/USD keep its footing.
Ethereum bears attempt to take lead following increased odds for a spot ETH ETF denial
Ethereum is indicating signs of a bearish move on Tuesday as it is largely trading horizontally. Its co-founder Vitalik Buterin has also proposed a new type of gas fee structure, while the chances of the SEC approving a spot ETH ETF decrease with every passing day.
US CPI data expected to show slow progress towards 2% target
The US Consumer Price Index is set to rise 3.4% YoY in April, following the 3.5% increase in March. Annual core CPI inflation is expected to edge lower to 3.6% in April. The inflation report could influence the timing of the Fed’s policy pivot.