Market Drivers – US Session 20/02/2023

The week has got an obviously quiet beginning as the United States observes the President’s Day holiday.

Economic Data

The absence of macroeconomic releases helped majors to trade within tight intraday ranges. Liquidity is thin and the market sentiment is sour.

Key Developments

North Korea fired an intercontinental ballistic missile on Saturday that landed in the Sea of Japan. Finally, US President Joe Biden unexpectedly visited Kyiv to announce additional weapons supplies. Tensions between the United States and China over the balloons shots earlier this month continue as US top diplomat Anthony Blinken said Beijing’s actions were irresponsible, while Chinese officials responded US reaction was “hysterical.”

EUR/USD trades around 1.0680, limited by softer-than-anticipated EU data. GBP/USD hovers around 1.2040, unchanged for the day.

Commodity-linked currencies advanced vs their American rival. AUD/USD trades around 0.6910, while USD/CAD is down to 1.3450. The USD/JPY pair is ending the day unchanged at 134.20.

Oil prices posted a modest intraday advance, with WTI currently trading at $77.70 a barrel. Gold peaked at $1,847.45, but finished the day around $1,841. On Tuesday, the focus will be on the preliminary estimates of the February S&P Global PMIs for major economies.

Also Read:

EUR/USD reluctatnt to leave Friday’s range as traders await the next catalyst

Gold could face losses as bond yields continue surging

Official: SNB is still willing to be active on the forex markets

Chinese shares lead gains as US observes Presidents Day

GBP/USD recovered, with little hope to stage a sustainable rise.

Oil surges 1% on Chinese demand hopes