Market Drivers – US Session, February 13

WTI prices rose for the seventh straight session, breaking through the $78.00 per barrel. These gains have always been supported by geopolitical concerns, constrained supply concerns, and the positive monthly report from OPEC.

Gold prices broke through the crucial downward zone below $2,000 per troy ounce as a result of the dollar’s recent leap and rising US yields. Silver did likewise, testing annual lows in the $22.00–$23.00 range per ounce.

Surprise US Inflation Figure

As US inflation continued to run hot in January, investors now started to price in a probable interest rate cut by the Federal Reserve in June, while the Greenback navigates yearly highs and US yields trade in multi-week tops across the curve.

Key Currency Price Action

The USD Index is approaching the key 105.00 barrier amidst higher yields and speculation of a June rate cut. On February 14, inflation will remain at centre stage with the release of Producer Prices, while FOMC’s Goolsbee and Barr are also expected to give fresh statements and comments. Markets will remain close in China amidst the New Year celebrations.

EUR/USD challenged the 1.0700 key support amidst the stronger Dollar and ahead of the release of another revision of Q4 GDP Growth Rate and Industrial Production readings in the euro bloc on February 14.

GBP/USD flirted with the key 200-day SMA near 1.2560 amidst the generalized sour sentiment in the risk-associated complex. All the attention in the UK will be on the publication of the January Inflation Rate on Wednesday.

USD/JPY climbed to fresh YTD highs near the 151.00 yardstick amidst the strong bounce in the Greenback and rising US yields. There will be no data releases in the Japanese docket on February 14.

Further weakness saw AUD/USD drop well south of 0.6500 the figure and print new three-month lows against the backdrop of persistent buying pressure in the US Dollar.

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