Market Drivers and Update; US Session: PMIs in Focus

The US dollar weakened significantly, reaching a two-month low despite no changes in US tariffs or progress in Russia-Ukraine peace talks. Friday’s key events include:

US: The US Dollar Index (DXY) fell to around 106.40 due to lower US yields, a stronger Japanese yen, and increased risk appetite. The focus will be on preliminary S&P Global Manufacturing and Services PMIs, Existing Home Sales, the final Michigan Consumer Sentiment reading, and a speech by Fed Governor Jefferson.

EUR/USD: The Euro rebounded, approaching 1.0500 due to the dollar’s decline. Eurozone data releases include German and Eurozone Manufacturing and Services PMIs, the European Commission’s Winter Forecasts, and a speech by ECB’s Lane.

GBP/USD: The British Pound rose to levels last seen in early December (around 1.2650) due to dollar weakness and increased risk appetite. UK data includes GfK Consumer Confidence, Retail Sales, flash S&P Global Manufacturing and Services PMIs, and Public Sector Net Borrowing.

USD/JPY: The Japanese yen’s strength pushed USD/JPY down to around 149.40, its lowest point since December. Japan’s key Inflation Rate and preliminary Jibun Bank Manufacturing and Services PMIs will be important.

AUD/USD: The Australian dollar reached a new two-month high above 0.6400 due to the dollar’s decline. Upcoming Australian data includes the RBA’s Monthly CPI Indicator and Construction Done figures (February 26).

Commodities: WTI crude oil prices rose above $73.00 due to supply concerns. Gold prices reached an all-time high above $2,950 per ounce, driven by tariff concerns and the ongoing Russia-Ukraine conflict. Silver prices also rose, exceeding $33.00 per ounce.