Market Drivers – US Session, February 19

The ongoing Gaza crisis as well as fresh Houthi attacks are keeping barrel prices high. Monday saw a test of $78.11 a barrel for West Texas Intermediate crude, finding the opportunity to gain momentum as US markets were closed in observance of the federal holiday known as American President’s Day. WTI crude oil is trading at 77.95 per barrel at the time of writing.

Bitcoin had a notable surge, breaking beyond the $52,000 mark just after it quickly recovered from Saturday’s loss. Strong buying activity on Monday propelled the price to its highest points over the previous five days, indicating a significant comeback to levels not seen since November 2021. Technically, there isn’t much resistance for Bitcoin until it gets close to $64,000, which suggests that the market is generally positive.

Major pairs continued to trade in narrow ranges during US and Canadian vacations, staying put at well-known levels. Even still, investors maintained a cautious optimism, with certain European and Japanese market indices nearing all-time highs.

The US Dollar saw slight gains versus safe-haven currencies like CHF and JPY, which inexplicably suggests that the financial markets are doing well.

The Reserve Bank of Australia (RBA) Meeting Minutes, which were released early on Tuesday, will kick off the macroeconomic calendar in Australia. The document may offer new insights into the actions that the RBA Board intends to take or possibly what is required for policymakers to start reducing rates and feel more confident about inflation declining.

Also Read:

WTI trades above $78.00 on continued supply concerns

Gold price consolidates gains ahead of FOMC minutes

Morgan Stanley faces accusations of cheating EU regulators

US stocks slightly recover post hotter than expected inflation figures

World geopolitical tensions could impact record US stock rally

EUR/GBP advanced in quiet trading