The EUR/USD pair reached its highest level since early November, surpassing 1.0850 on Friday, as the US Dollar faced continued bearish pressure. Investors are eagerly awaiting February's employment data, which is anticipated to provide further insights into the economic landscape. The US Dollar's struggles have contributed significantly to the upward momentum of the EUR/USD pair.
The GBP/USD also saw positive movement, regaining traction and trading above 1.2900 during the European session. This surge reflects broader market trends affecting currencies as traders adapt to evolving economic indicators. The USD's performance was further hindered by retreating US Treasury bond yields, which provided additional support to EUR/USD.
Gold prices remained steady above $2,900 on Friday, as the XAU/USD pair faced limited losses. Bets on potential interest rate cuts by the Federal Reserve played a role in stabilizing gold prices amid a volatile market environment. The market dynamics continue to evolve as traders await the release of the US Non-Farm Payrolls (NFP) report, expected to offer critical insights into employment trends.
Recent consumer price inflation data indicated strong performance in 2025, with the headline Consumer Price Index (CPI) rising by 0.25% and the core index advancing by 0.27%. Despite this strong showing, price growth appears to have cooled somewhat in February. The core index is likely to reflect some giveback in categories that experienced significant increases in January.
Despite these developments, the US Dollar continues to grapple with bearish sentiment, driven by a combination of factors including economic indicators and speculation about future Federal Reserve policies. These challenges have contributed to the currency's inability to regain its footing against major rivals.