The financial markets experienced notable shifts on Thursday as risk-on sentiment fueled a sell-off of the US Dollar, benefiting various asset classes. Traders remain optimistic about potential peace talks between Russia and Ukraine, which has contributed to this sentiment. As a result, the British Pound and Gold emerged as key beneficiaries on a day marked by significant market activity.
The Bitcoin price consolidated below the $100,000 threshold, erasing less than 2% of its value throughout the day. Meanwhile, Gold resumed its upward rally, soaring near $2,920 as bullion traders largely dismissed the United States Consumer Price Index data for January. In the European session, the EUR/USD pair maintained a strong position above 1.0400, reflecting sustained demand for the Euro.
The British Pound Sterling also enjoyed a boost from the improved risk mood. The UK economy expanded at an annual rate of 1.4% in the fourth quarter, surpassing market expectations of a 1.1% growth rate. This positive economic performance bolstered the GBP/USD pair, which sustained its bullish momentum and traded near 1.2500 in the European session.
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