The foreign exchange and commodities markets witnessed significant movements this week, as several factors influenced trading dynamics. On Thursday, the GBP/USD pair recovered from its 14-month low below 1.2250, trading above 1.2300. Meanwhile, the benchmark 10-year US Treasury bond yield corrected lower from a recent multi-month high above 4.7%. This retreat in US bond yields helped limit the USD's gains and shifted market attention towards Fedspeak.
In the UK, gilt yields adjusted lower after a remarkable surge to multi-year highs following a two-day selloff. This correction provided some relief to the currency markets as investors assessed the implications of the yield movements. The EUR/USD pair gained traction, trading above 1.0300 despite mixed data from the German Industrial Production and Eurozone Retail Sales.
Gold continued its upward trajectory, extending its weekly recovery to trade at its highest level since mid-December, surpassing $2,670. The precious metal's appeal appeared to strengthen as investors looked for safe-haven assets amidst market uncertainties.
Bitcoin, however, faced downward pressure, trading below the $94,000 mark on Thursday. The cryptocurrency experienced a decline of over 5% this week, further exacerbated by an outflow exceeding $568 million from Bitcoin US spot Exchange Traded Funds on Wednesday.
The Nonfarm Payrolls (NFP) indicator remains a crucial metric for gauging the health of the US labor market. Typically released on the first Friday of each month, it provides comprehensive insights that can significantly influence investor sentiment and market movements.
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