This is what you need to know to trade today friday february 25:
Safe-haven money flows dominated financial markets for most of Thursday and the US dollar index DXY rose to its highest level since June 2020 at 97.73 before pulling back at the end of the American session. Markets remain relatively calm early on Friday and the DXY index extends its corrective slide as investors brace for another turbulent day. The European Commission will release the sentiment report for February, while the US Bureau of Economic Analysis PCE Personal Consumption Expenditure Price Index data is due later in the day. However, it is likely that the events around the war between Russia and Ukraine remain as the main driver of the market before the weekend.
Following Russia’s decision to launch an attack on Ukraine, Western nations announced a series of sanctions on Thursday. The EU, the UK and the US refrained from separating Russia from the SWIFT system, while noting that the option was still on the table. What’s more, the Russian energy sector was also largely left out of the sanctions, easing concerns about the negative impact of sanctions on the world economy and inflation. However, “today will be the hardest day“, a Ukrainian government adviser said earlier in the day, noting that Russia planned to use tanks to break through Kiev. What’s moreUkrainian President Zelenskyy has said that the sanctions imposed on Russia were not enough.
At the start of the European session, the DXY index falls 0.2% on the day to 96.85, the 10-year US Treasury bond yield remains at 1.96% and a barrel of West Texas Intermediate WTI up 1.75% to 94.60. US stock index futures posted small losses, pointing to cautious sentiment in the market.
The EUR/USD is bouncing back and trading in positive territory above 1.1200 after losing over 200 pips and posting one of its biggest daily declines in several months on Thursday.
The GBP/USD fell to its lowest level since late December at 1.3271 on Thursday, but managed to recoup some of its losses. At time of writing, the pair is up 0.4% on the day at 1.3426.
The gold rose to its highest level since September 2020 at $1,974 on Thursday, but made a dramatic U-turn in the second half of the day to close flat just above $1,900. XAU/USD has regained its bullish momentum early on Friday and has started to rally as high as $1,920.
Although the JPY managed to outperform risk-sensitive rivals such as the EUR, GBP and AUD on Thursday, the USD/JPY gained traction on the overall strength of the US dollar and rose to the 115.50 area. The pair consolidates its gains and remains above 115.00.
The Bitcoin It fell below $35,000 but capitalized on the risk reversal at the end of the American session on Thursday and closed above $38,000. BTC/USD is posting modest gains early Friday but remains below $40,000 for the time being. The ethereum it is trading in a relatively tight range above $2,600 after recovering from the multi-week low touched at $2,300 on Thursday.
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
