Things to watch out for on Tuesday, February 14:
US-China tensions weighed on market sentiment at the weekly open, and the USD made the most of it. However, better market sentiment during European trading hours pushed the US dollar into the red across the currency board.
However, the absence of relevant macroeconomic publications and the upcoming update of the Consumer Price Index from USA. limited the intraday fall of the dollar. The markets await the publication of the Consumer Price Index (CPI) for January in the United States. Inflation is expected to rise at an annualized pace of 6.2%, up from 6.5% yoy in December. The core index, which excludes food and energy price volatility, would come in at 5.5%. Although the US Federal Reserve does not base its decision on this particular figure, it has a major impact on financial markets as it reflects price pressures in the country.
The EUR/USD pair bottomed at 1.0655, bouncing towards the 1.0720 price zone. The pair retains early Asian gains, despite ignoring early headlines. The European Commission reported on forecasts quarterly economic growth. Economic growth in the Eurozone has been revised upwards, now standing at 0.9%. In addition, inflation forecasts have been revised downward to 5.6% for this year and 2.5% in 2024.
Sterling was one of the best performing currencies, advancing against its US rival to 1.2144, easing modestly before closing. The latest UK employment figures will be released on Tuesday.
AUD/USD is currently trading around 0.6960, while USD/CAD dips to the 1.3330 area, with the commodity currencies benefiting from better tone on Wall Street. US indices pulled back from their intraday highs but still ended the day with gains.
Government bond yields oscillated throughout the day, appreciating during Asian trading hours, but losing some ground late in the day amid better sentiment. However, the 2-year Treasury yield rose, while the 10-year yield ended the day largely unchanged.
Gold fell and is trading at February lows, just above $1,850 a troy ounce. Elsewhere, crude oil prices followed stocks, with WTI rising as high as $80 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.
