This is what you need to know to trade today friday march 4:
Safe-haven flows once again took control of markets during Asian trading hours on Friday after reports showed a fire broke out in a Ukrainian nuclear complex building. According to the latest headlines, the fire has been extinguished and there was no indication of elevated radiation levels. However, markets remain risk averse with the US Dollar Index trading at its highest level since May 2020, near 98.00. Later in the day, January retail sales data will be presented on the European calendar ahead of the US February Non-Farm Payrolls report.
Preview US Non-Farm Payrolls for February: Fed policy is executed in Kiev
“Europeans, please wake up. Tell your politicians that Russian troops are firing on a nuclear power plant in Ukraine,” Ukrainian President Volodymyr Zelenskyy said on Friday morning. With investors seeking shelter, the 10-year US Treasury bond yield is down 2.5% to 1,799% and US stock index futures are losing 0.3-0.5%.
On the second day of his testimony, the FOMC chairman, Jerome Powelll, reiterated that they might consider the option of a 50 basis point rate hike if they fail to control inflation after the first round of rate hikes.
Pressured by the strength of the dollar amid Powell’s aggressive tone and the market’s bad mood, the EUR/USD it tumbled to its weakest level in 22 months near 1.1000. The pair made a technical correction after the sell-off witnessed during the Asian session, but continues to trade in negative territory below 1.1030.
The GBP/USD remains under modest downside pressure after posting losses on Thursday, but remains above 1.3300 for now.
The gold it remains one of the assets most sensitive to changes in risk sentiment. In Asian trading hours, XAU/USD rose above $1,950 but erased all of its gains to go flat on the day near $1,935 in European morning.
February Non-Farm Payroll Preview: Analyzing Gold’s Reaction to NFP Surprises
The USD/JPY is having a hard time making a decisive move in either direction on Friday as the JPY finds demand as a safe haven and remains firm against the USD. The pair is moving sideways near 115.50.
The Bitcoin it continues to erase the gains it posted earlier in the week and drops to $41,000 early on Friday. After closing the previous two days in negative territory and losing 5% during that period, the ethereum remains on the defensive and was last seen down 4% on the day at $2,700.
Source: Fx Street
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