Forex Today: Unimpressive Fed, escalating geopolitical tensions

Valeria Bednarik FXStreet

What you need to know on Thursday, February 17:

The American dollar edged lower on Wednesday, despite the release of upbeat US data and uncertainty related to Russian and Ukrainian border tensions. Also, the US Federal Reserve released the Minutes of the latest FOMC meeting, which indicated that policymakers are willing to hike rates but did not mention a 50 bps move in March.

US Retail Sales were up 3.8% in January, much better than anticipated, while Industrial Production in the same month surged by 1.4% vs the 0.4% expected.

Regarding geopolitical tensions, the latest on the matter was the Estonian Foreign Intelligence Service chief reporting that Russia was moving some 10 battle groups towards the area near Ukraine, where more groups are already awaiting.

European indexes closed in the red with modest losses. Wall Street spent most of the day in the red but managed to recover post-FOMC Minutes now mixed around their opening levels.

Government bond yields remained up the upper end of their weekly range, with the yield on the US 10-year Treasury note hovering around 2.05%.

EUR/USD trades around 1.1390, while GBP/USD flirts with 1.3600 amid the broad dollar's weakness. The AUD/USD pair is also up, trading around 0.7200, while USD/CAD lags, hovering around 1.2670. Weaker oil prices limit the CAD as the black gold retreated sharply from its daily high and trades around $92.50 a barrel.

Iran's top nuclear negotiator Ali Bagheri Kani tweeted that, following weeks of intensive talks, the JCPOA participants, including the US and Iran are closer than ever to an agreement. However, he added that "nothing is agreed until everything is agreed."

Safe-haven currencies managed to advance against the greenback, with USD/CHF down to 0.9210.

Gold edged higher and trades at around $1870 a troy ounce.

Cardano Price Prediction: ADA readies for another run to $1.30

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds steady above 1.1850 as markets eye Eurozone GDP, US CPI inflation releases

The EUR/USD pair trades on a flat note near 1.1870 during the early Asian session on Friday. The major pair steadies amid mixed signals from the latest release of US economic indicators. Traders await the preliminary reading of the Eurozone Gross Domestic Product for the fourth quarter and US inflation data, which are published later on Friday.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold: Will US CPI data trigger a range breakout?

Gold retakes $5,000 early Friday amid a turnaround from weekly lows as US CPI data loom. The US Dollar consolidates weekly losses as AI concerns-driven risk-off mood stalls downside. Technically, Gold appears primed for a big range breakout, with risks skewed toward a bullish break.