Markets maintain their focus on rate cut bets

Another solid print from the weekly report of the US labour market lent extra support to the Fed’s tighter-for-longer narrative, although the move in the Greenback was limited. Furthermore,  room to the Greenback and sponsored a broad-based knee-jerk in the risk-complex, while the generalized upbeat flash readings from PMIs initially bolstered a spike in risk-related assets.

Here is what you need to know on Friday, February 23:

The USD Index (DXY) remained on the back foot amidst the multi-session negative streak, hovering around the 104.00 region along with some recovery in US yields. At the end of the week, only the speech by Fed’s C. Waller is due.

EUR/USD ran out of steam just ahead of 1.0900 the figure on the back of encouraging PMIs, although the late recovery in the Greenback forced spot to relinquish those gains. On February 23, Germany will be in the spotlight with the releases of the final Q4 GDP Growth Rate and the Business Climate tracked by the IFO institute.

GBP/USD traded in quite a volatile fashion, although it managed to clinch to daily gains and extend the weekly bounce for the third straight session. Across the Channel, the GfK Consumer Confidence will be only due on February 23.

USD/JPY added to Wednesday’s advance and climbed further north of the 150.00 milestones. The next event of note in Japan will be the release of January inflation figures on February 27.

In line with their risky peers, AUD/USD left behind the multi-session advance and gave away some gains after briefly flirting with the 0.6600 hurdle. Next on tap in Australia will be the RBA’s Monthly CPI Indicator on February 28.

In China, the House Price Index is due on February 23. USD/CNH managed to regain some balance and chart decent gains past the 7.2000 mark after two consecutive daily pullbacks.

WTI prices rose to the area of monthly highs near the $79.00 mark per barrel amidst rising geopolitical jitters and another unexpected build in US crude oil supplies.

Gold prices partially set aside several sessions of gains and settled around the $2,020 zone per troy ounce, while its cousin Silver retreated for the fourth day in a row, revisiting weekly lows near $22.70 per ounce.