Forex Today: Soaring Fed's rate cut odds hit the greenback

FXStreet Team FXStreet

Here is what you need to know on Friday, February 28th:

The greenback plummeted as record lows in Treasury yields and collapsing Wall Street fueled speculation of an upcoming rate cut in the US. Odds for a rate cut as soon as next March have increased to 72% from 33% two days ago, according to the CME Group FedWatch tool.
The EUR/USD pair peaked at 1.1006, settling just below 1.1000. The common currency got additional support from headlines suggesting that Germany would act through a fiscal stimulus program if the coronavirus hits the local economy.
The Pound was the weakest, undermined by Brexit-related headlines. The UK government published a document outlining its priorities for trade talks. Among other things, the document showed that the kingdom is ready to walk away from the negotiation table in June if there’s no progress on talks by that point. Also, the agreement should not require the UK to follow EU standards.
The USD/JPY pair settled below 110.00, bouncing from the critical 109.65 support. Chances are of a break lower.
The Aussie recovered just modestly amid dollar’s weakness, while the Canadian dollar plummeted alongside crude oil prices, these last, affected by market’s fears.
Gold eased just modestly at the end of the day, settling at around $1,640.00 a troy ounce.
Crypto Today: Bitcoin troubles still linger underneath $9000

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EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.