HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

A quieter market session could favour the dollar


17 February 2025

Raffi Boyadjian   Written by Raffi Boyadjian

Geopolitics in the spotlight

With US President Trump taking advantage of the long US weekend to visit his Florida resort, there are expectations for a quiet market session today. Having said that, developments on the geopolitical scene are significant. US and Russian delegates are scheduled to hold talks in Saudi Arabia on Tuesday, with both Ukraine and the EU being absent from the negotiations. Even the choice of country for these talks is indicative of Europe’s struggle to play a key role on the geopolitical stage, as historically, Switzerland or Austria have been selected as the venues for such negotiations.

In response, European leaders are meeting today in Paris, for an emergency summit called by French President Macron, to prepare for Ukraine’s post-war future. However, with the German federal elections around the corner, no substantial progress is expected. Interestingly, gold is being affected by these developments, retreating from its recent all-time high. This move could also be due to profit-taking after a strong rally, with the precious metal hovering below the $2,900 level today.

Euro gains despite dovish ECB

The euro is apparently also benefiting from the increased possibility of the conclusion of the Ukraine-Russia conflict. Euro/dollar is trading slightly below the 1.0500 area, after last week’s 1.6% gain. The euro is recording a solid 1.3% rally against the dollar in February, which is the strongest monthly performance for the eurozone’s currency since August 2024, when the Fed signalled its readiness to start easing its monetary policy stance.

This move comes amidst a period of decent eurozone data prints and mostly positive US economic releases. This week, the calendar is quieter, as Friday’s preliminary PMI surveys for the euro area side are expected to prove market moving. In the US, various business surveys and the Fed minutes from the late-January meeting are seen generating headlines. Additionally, a plethora of Fed speakers are expected this week, with three Fed officials - board members Bowman and Waller, and Philadelphia’s Harker - on the wires today.

Pound’s recent gains could be under threat this week

Several currencies have taken advantage of the dollar’s retreat. Cable is up 1.6% this month, but there is a crucial data calendar this week. Tuesday’s labour market figures, Wednesday's CPI report and Friday’s retail sales numbers could turn the tide for the pound. Additionally, a negative set of data this week could also fuel discussions about the late-March Spring budget, with numerous analysts pointing to potential adjustments to the Autumn budget tax rises.

Asia-Pacific region in the spotlight as RBA and RBNZ meet

Both the RBA and the RBNZ are holding their first monetary policy meetings for 2025 this week. While the latter is forecast to cut rates by 50bps - with a 10% chance of a 75bps adjustment - the RBA is expected to announce its first rate reduction since 2020, having resisted joining the rate-cutting club up to now. US tariffs and the continued failure of the Chinese administration to restart the local economy have firmly opened the door to tomorrow’s probable rate adjustment. A dovish show from these central banks could endanger both the aussie’s and kiwi’s solid gains against the US dollar in February.

Yen benefits from another set of strong data

Finally, dollar/yen is in retreat once again today as the positive Japanese data releases continue. Specifically, the preliminary GDP print for the fourth quarter of 2024 jumped by 0.7% quarter-on-quarter, partly erasing the weaker third quarter, and the GDP deflator increased by 2.8% on an annual basis. Following last week’s solid PPI report, which tends to lead CPI by a few months, there are increasing expectations for another BoJ rate hike soon, especially if the imminent Shinto round results in robust wage increases.

By XM.com

#source


RELATED

Risk sentiment retreats as Trump prepares for fresh tariff decisions

The positive start to the week in risk sentiment is gradually reversing, as US President Trump maintains his tariff rhetoric.

16 Apr 2025

Improved risk sentiment to be tested as Trump paves way for fresh tariffs

Electronic tariffs in the spotlight, risk appetite gets a small boost; Trump could dampen sentiment with fresh tariff decisions; US equities record best weekly performance since 2022.

14 Apr 2025

Risk aversion returns. Dollar, Treasuries and Wall Street slip

The US dollar continued to tumble against all its major peers on Thursday and during the Asian session on Friday.

11 Apr 2025

Wall Street stages impressive rally amid tariff pause

Wall Street skyrocketed yesterday, with the S&P 500 recording its biggest winning day since the Great Recession and the tech-heavy Nasdaq rallying more than 12%, the most since 2001.

10 Apr 2025

Stocks suffer as Trump's increased tariffs take effect

Reciprocal tariffs kick in, risk sentiment takes another hit; China faces 104% tariff, its response is awaited; US equities remain under severe pressure, dollar suffers; Gold and bitcoin recover; oil remains in recession-signaling territory.

9 Apr 2025

Stock markets crash, but Trump appears relaxed

US equity indices enter bear market territory; China retaliates, while Europe is still discussing its response; Pressure on the Fed to save the day; Powell is not giving in yet; Gold, oil and bitcoin suffer considerable losses.

7 Apr 2025

Markets hold their breath for ‘Liberation Day’

Trump to announce his tariff decisions at 20:00 GMT; All bets about Trump’s stance and the tariffs’ start date are on; Risk appetite to be supported by a softer set of announcements; US data could further increase concerns about stagflation.

2 Apr 2025

Gold Shatters Records: Prices Set to Climb Even Higher

On Monday, gold surged to a historic $3,115 per troy ounce, marking another milestone in its relentless rally. Analysts predict further gains as multiple bullish factors converge.

31 Mar 2025

Equities react negatively to Trump's new car tariff surprise

Trump announces car tariffs, prepares ground for April 2 deadline; US equities suffer; European equities could be under severe pressure; Dollar gets a small boost against euro and yen; Gold and oil maintain most of their recent gains.

27 Mar 2025

Risk appetite recovers as April 2 tariff deadline approaches

Both US equities and the dollar continue to recover; US consumers are under stress, as the April 2 deadline is approaching; Pound suffers from weaker inflation; all eyes on the Budget update; Gold, oil and bitcoin move in sync;

26 Mar 2025

Trump plans narrower April 2 tariffs

Dollars ends the week in the green. Traders still bet on third rate cut - Trump to announce narrower, more targeted tariffs on April 2 - Euro pulls back. Wall Street set to open higher after tariff-related reports.

24 Mar 2025

Markets like Fed's message, but will this last?

Fed keeps rates unchanged as Chair Powell calms markets. Forecasts point to stagflation and 50bps cuts in 2025. Positive equity reaction, but Trump's rhetoric could reverse sentiment.

20 Mar 2025

Fed and BoJ rate decisions enter the limelight

The dollar extended its slide against all but one of its major peers on Monday, gaining some ground only against the Japanese yen. Today, the greenback is holding steady, extending its advance against the yen.

18 Mar 2025

The calm before the storm for the markets?

Following a tumultuous period, which had all the ingredients of a full-blown market crash, there has been slightly more positive sentiment among market participants since Friday.

17 Mar 2025

Trump continues to dampen risk appetite

After almost two months in office, US President Trump remains the biggest risk factor. His inconsistent tariff strategy and fierce rhetoric continue to cast a shadow over markets, particularly US equities.

12 Mar 2025

US stocks continue to vote down Trump's tariff strategy

Trump retracts tariffs on its closest trading partners; Both US equities and the dollar continue to suffer; ECB cuts rates but the euro keeps shining; Oil and cryptos remain under stress.

7 Mar 2025

New month, old habits for Trump as equities suffer

Risk assets have started the new month off on the wrong foot, as US President Trump has announced the imposition of the next round of tariffs.

4 Mar 2025

Markets try to find their footing after a risk-off session

Tariff talk and weak US data fueled a risk-off reaction. Nvidia earnings may test market's risk appetite.

26 Feb 2025

Dollar starts the week on the front foot

Lengthy negotiations to follow German election result. Both the euro and German stocks gain, but outlook remains clouded.

24 Feb 2025

Dollar benefits from weak risk appetite

Despite US President Trump adopting a more relaxed approach this week on the issue of tariffs, market participants remain concerned about what lies ahead.

21 Feb 2025


Editors' Picks

How to Choose the Best Forex Advisor 2025

Key Factors to Consider When Choosing a Forex Advisor. Risk Management. Fees and Costs. Compatibility with Your Trading Style.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2025

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.