Things to watch out for on Thursday, February 9:
The US dollar ended mixed on Wednesday, as optimism sparked by the President of the United States Federal Reserve Jerome Powell moderated throughout the day. European stock indices managed to post modest gains, but Wall Street settled into the red. Still, US government bond yields held steady around Tuesday’s closing levels, limiting dollar strength.
The euro remains one of the weaker rivals to the dollar, currently trading around 1.0725. The functionaries from the bank Central European (B) CE) repeated their aggressive line speech. ECB policymaker Klaas Knot said headline inflation appears to have peaked, but added that the current pace of increases may need to continue until May if core inflation does not decline substantially.
On the other hand, Fed Governor Lisa Cook stated that the central bank remains focused on restoring price stability as inflation remains too high. She added that they will need a tight monetary policy for some time. Also, the president of the Federal Reserve of New York, John Williams, affirmed that the labor market continues to be very strong and indicated that they have more work to do on the matter of rates, adding that the data will determine the path of rate hikes. Finally, Fed Governor Christopher Waller warned that interest rates could rise more than expected.
GBP/USD is trading around 1.2070, holding modest intraday gains.
He Bank The Canadian released the newly released Minutes of its latest monetary policy meeting- The document had no impact on the CAD as the BOC signaled a pause on rate hikes after announcing its decision. USD/CAD is trading around 1.3430.
AUD/USD fell to 0.6920 as weak Wall Street results weighed on the pair. Finally, USD/JPY advanced and is now around 131.40.
Gold hit a fresh weekly high of $1,886.31 earlier in the day, but quickly pulled back and is now trading around $1,874. Elsewhere, crude oil prices maintained the positive momentum, with WTI currently trading at $78.40 a barrel.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
