Market Drivers – US Session, February 28

Bitcoin has hit $63000 after more than two years below this level, and liquidations have surpassed $277 million in the last 24 hours. This massive rally in the pioneer cryptocurrency could be attributed to the spot ETF approval. Bitcoin price has shattered past the $63000 threshold, with the bulls not showing any signs of stopping.

The US dollar is up 0.12%, gaining some additional strength against the background of growing caution before the release of US inflation data from the PCE on Thursday. Sentiment was affected by the US dollar’s recent gain, which led to some corrective actions in the risk complex.

On February 29, the PCE’s measure of inflation will be the centre of attention, along with personal income, spending, pending home sales, and the weekly first claims for unemployment. Moreover, Bostic, Goolsbee, and Mester from Fed are scheduled to speak.

For the second straight session, EUR/USD traded cautiously, albeit it was able to recover from lows around 1.0800. On February 29, the CPI’s preliminary rate of inflation for the entire euro area takes central stage, followed by the labour market report, Germany’s retail sales, and the flash inflation rate.

GBP/USD fell to multiday lows around 1.2620 as a result of fresh interest in purchasing the Greenback. The deadline for mortgage lending and approvals is February 28.

The weekly volatility of the USD/JPY remained stable above the 150.00 mark. The typical weekly data on foreign bond investments is due on February 29. This is followed by flash data on industrial production, retail sales, housing starts, and BoJ’s Hajime’s speech.

In the sub-0.6500 range, the AUD/USD plummeted to two-week lows, with the pair trading below the 200-day SMA. Data-wise, on February 29, Australia’s Housing Credit and advanced Retail Sales came first.

After reaching a new peak for 2024 at roughly $79.60 per barrel, WTI prices saw a tumultuous session as traders evaluated a number of factors, including the possibility that the Fed will postpone raising interest rates, the ongoing crises in the Middle East and the Red Sea, and rumours that OPEC+ would continue to cut supplies.

Gold prices held onto their daily gains in the $2,030 range, but silver prices continued their trend lower, opening the possibility of a test of the $22.00 per ounce level sooner rather than later.

Also Read:

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Fed’s Williams: Three rate cuts in 2024 a good baseline for Fed

US stocks slide in cautious countdown to looming PCE

Will Thursday’s PCE figure make Fed’s road bumpier?

Bitcoin stabilizes after soaring past $63000 amid cautious optimism

EUR/USD falls as attention shifts to EU, US inflation data

Confidence in Eurozone Economy worsened in February