Market Drivers – US Session, February 8

Amid persistent rumours on a Fed interest rate cut in May, growing geopolitical concerns, and some comments implying that the ECB is not in a haste to start reducing rates, shifting trends in risk appetite ruled the mood across traded assets.

In the midst of further repricing of an interest rate decrease by the Fed in May, the US dollar regained some composure and helped the USD Index (DXY) to remain above the 104.00 barrier. Dallas Fed L. Logan will be the lone game on the US schedule on Friday.

The EUR/USD pair made a small rise and closed the deal in the upper part of the weekly range, which is located in the 1.0770/80 band. On Friday, the German final inflation rate will be the main topic of discussion on the home calendar.

On Thursday, the GBP/USD pair slightly declined after reversing its two-day rise, although it was still able to hold above 1.2600.

Amid modest advances in the US Dollar and higher rates, BoJ’s Uchida’s pessimistic remarks put a lot of pressure on the Japanese yen and drove the USD/JPY to fresh yearly highs north of the 149.00 barrier.


As increased deflationary pressures in China, negative price action in the commodities complex, and the somewhat higher dollar proved to be too much for the Aussie Dollar, AUD/USD continued its losses from the previous North American session and sharply fell to the sub-0.6500 zone.

On Friday, China will be releasing the flash Q4 Current Account. Meanwhile, USD/CNH continued its weekly upswing and made brief visits to the 7.2200 region.

Unrelenting geopolitical anxieties and the upbeat weekly report from the EIA kept the WTI price on a steep upward trajectory, pushing it beyond $76.00 per barrel.

While silver prices significantly recovered to reach three-day highs of $22.60 per ounce, gold prices fell slightly to the $2030 zone per troy ounce.

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