US Dollar consolidates weekly loss with equities as biggest winners

NEW YORK (February 23) The US Dollar (USD) is closing this week’s performance at a loss. A correlation with the risk sentiment and the fact that equities had a very upbeat week makes it clear that the US Dollar does not thrive when there is a risk on tone present in markets. With all three major US equity indices firmly higher for this week, the US Dollar Index is taking a step back and is set to close out the week lower. 

On the economic data front, there is nearly nothing to report. Besides possibly a few surprise unscheduled comments from an US Federal Reserve member, it looks like markets will slowly head out into the weekend. Next week, nearly every day sees a pivotal number due to be released, with Durable Goods, US Gross Domestic Product, Personal Consumption Expenditures and Manufacturing data from the Institute of Supply Management all on the docket.

Daily digest market movers: TGIF

• Nikkey Haley and former US President Donald Trump are facing their next vote in the presidential race this Saturday. This time the stage is in South Carolina with primaries on the docket. 
• ECB governor Robert Holzmann made comments on Bloomberg television, saying that the European Central Bank (ECB) will not cut this year and will only consider cutting later and bigger rather than cutting too early. 
• The EU is set to release its list of sanctioned companies in Russia, China, India and several other countries that are seen by the EU as aiding Russia in its war. 
• The US from their side are still working on another sanction package this Friday. The packages come after opposition leader Alexei Navalny died in detention a few days ago.
• Equities are flat ahead of the US opening bell this Friday. That this rally is not done yet, was noticeable in Japan where the Nikkei rallied again over 2%. Europe and the US are rather reluctant to follow suit and are flat for now. 
• The CME Group’s FedWatch Tool is now looking at the March 20 meeting. Expectations for a pause are at 97.5%, while chances of a rate cut stand at 2.5%. 
• The benchmark 10-year US Treasury Note trades around 4.34%, which is near the highest level for this week. 

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