The US Dollar Index (DXY) reversed its previous two-day gains, falling back toward two-month lows as US yields across the curve declined. Traders are awaiting key economic data, including the weekly MBA Mortgage Applications, New Home Sales figures, and the Energy Information Administration’s (EIA) weekly report on US crude oil inventories. Additionally, speeches from Federal Reserve officials Barkin and Bostic are set to provide further insights into monetary policy expectations.
EUR/USD extended its rally, testing levels above 1.0500 as the US dollar experienced significant selling pressure. Investors will turn their focus to Germany’s Gfk Consumer Confidence data, which could offer more clues about the eurozone’s economic health.
GBP/USD partially recovered from recent losses, moving back above the 1.2600 mark. The only major economic release in the UK today will be the CBI Distributive Trades, with Bank of England official Pill also set to deliver a speech.
USD/JPY continued its slide, reaching levels not seen since early December, dropping to around 148.50. Investors will look to Japan’s final prints of the December Coincident Index and Leading Economic Index for further direction.
In the Australian market, tariff concerns led to a third consecutive day of losses for AUD/USD, which fell back to the 0.6320 region. Traders will be looking ahead to Australia’s RBA Monthly CPI Indicator and Construction Done figures, both due for release on February 26.
Oil prices continued their downward spiral, with WTI crude falling to fresh yearly lows just below $69 per barrel. This drop was driven by growing concerns over the US economy’s health and the potential for additional tariffs.
Meanwhile, precious metals saw some profit-taking, with gold prices dropping to multi-day lows below the key $2,900 per ounce level. Silver also retreated to two-week lows near $31.00 per ounce.
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