Here's what you need to know to trade today Thursday February 22:
The US Dollar has lost traction during the Asian session on Thursday and the DXY Dollar Index has fallen below 104.00, pressured by improving risk sentiment. Market participants will follow closely HCOB Manufacturing and Services PMIs for Germany and the Eurozone, S&P Global/CIPS PMIs for the United Kingdom and S&P Global PMIs for the United States.
In the minutes of the January monetary policy meeting, the Federal Reserve stated that most monetary policymakers noted the risks associated with easing policy too quickly and highlighted the importance of carefully evaluating incoming data to judge whether inflation is sustainably falling towards 2%. “Officials highlighted uncertainty over how long the tightening monetary policy stance would be necessary,” the publication further noted. Although the dollar rose in initial reaction, it erased its gains as risk-on monetary flows began to dominate financial markets towards the end of the day. Early Thursday, Nasdaq futures rose more than 1.5% on encouraging earnings numbers from Nvidia. Meanwhile, the benchmark 10-year US Treasury yield remains stable around 4.3%, after rising slightly on Wednesday.
Dollar Quote this week
The following table shows the percentage change of the United States Dollar (USD) against the main currencies this week.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.54% | -0.36% | -0.14% | -0.62% | 0.08% | -1.18% | -0.42% | |
| EUR | 0.54% | 0.19% | 0.40% | -0.07% | 0.62% | -0.63% | 0.12% | |
| GBP | 0.36% | -0.18% | 0.23% | -0.26% | 0.41% | -0.82% | -0.07% | |
| CAD | 0.14% | -0.40% | -0.21% | -0.49% | 0.20% | -1.03% | -0.29% | |
| AUD | 0.64% | 0.09% | 0.28% | 0.50% | 0.69% | -0.53% | 0.21% | |
| JPY | -0.07% | -0.62% | -0.40% | -0.19% | -0.73% | -1.24% | -0.49% | |
| NZD | 1.17% | 0.63% | 0.81% | 1.03% | 0.55% | 1.23% | 0.74% | |
| CHF | 0.43% | -0.11% | 0.07% | 0.28% | -0.19% | 0.48% | -0.74% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).
He EUR/USD gains bullish momentum and approaches 1.0850 early Thursday, reaching its highest level in almost three weeks. Eurozone and German PMI surveys expected to show continued contraction in business activity from the private sector in early February.
He GBP/USD continues to rise after closing the previous two days in positive territory and is now trading a few pips above 1.2650.
Data from Australia showed on Thursday that the Judo Bank Composite PMI Improved up to 51.8 in the February flash estimate from 49 in January, highlighting a pick-up in growth momentum in the private sector. He AUD/USD gains traction after this data and advances towards 0.6600.
He Jibun Bank services PMI fell to 52.5 from 53.1 in Japan, while the manufacturing PMI fell to 47.2 from 48. Despite the general weakness of the Dollar, the pair USD/JPY remains relatively stable above 150.00 following weak PMI readings.
He USD/CAD recorded small losses on Wednesday before falling sharply towards the 1.3450 area in the Asian session on Thursday. Statistics Canada will publish retail sales data for december later in the day.
The price of Gold failed to benefit from the selling pressure surrounding the USD and closed virtually unchanged on Wednesday. Although
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
