Friday With No Significant Data on Schedule

Investors remain nervous on Friday after foreign ministers of Russia and Ukraine failed to make progress on a ceasefire.

Therefore, another round of selling could hit the markets later in the day as holding positions over the weekend could be risky. 

Elsewhere, the 10-year US yield tagged the 2% threshold again as inflation worldwide continues to rise, prompting central banks, especially the Fed, to tighten monetary policy and hike rates. As a result, the 2-year yield rose to new cycle highs above 1.7%.

Later in the day, the Canadian labor market data are due, likely influencing the USDCAD pair. Additionally, the University of Michigan’s preliminary Consumer Sentiment Index for March will be released, expected to decline slightly from 62.8 to 61.4. However, considering the ongoing rise in inflation, Ukraine war, and drops in equities, the actual number could be far worse.

In the FX market, the EURUSD pair returned below the 1.10 level yesterday. It seems the rally in the USD could continue, as the greenback benefits both from the Ukraine conflict and much more aggressive monetary policy tightening than in the eurozone.

Commodities remain volatile, with WTI trading above 100 USD and gold changing hands near the critical 2,000 USD threshold.

Source: https://www.axiory.com/analytics/market-news/friday-with-no-significant-data-on-schedule