In an eventful week for global markets, Federal Reserve rate cut bets have left US Dollar bulls on the defensive. As traders await the release of Wednesday's FOMC meeting minutes, the Reserve Bank of Australia has cut rates as anticipated. Meanwhile, economists are closely eyeing Friday's PMI data from S&P, predicting a mild uptick in business activity for February. Concurrently, Maker (MKR) has seen its price surge by over 20% this week, extending gains by 6% to trade around $1,189 on Wednesday.
Gold prices have reached new lifetime highs, nearing $2,950 amid escalating trade war fears. In contrast, the GBP/USD remained steady above 1.2600 during the European session on Wednesday. This stability follows an increase in the UK's annual CPI inflation rate, which rose to 3% in January from December's 2.5%. These developments come as markets adopt a more cautious stance on the progress of Russia-Ukraine negotiations.
Maker (MKR) has been a standout performer, generating $10 million in revenue on February 10, marking a yearly high in daily revenue according to Artemis data. This surge has bolstered MKR's position in the market, driving its price higher throughout the week.
In the commodities sector, gold's ascent to record highs is attributed to heightened trade tensions, which have fueled demand for safe-haven assets. The precious metal's rally underscores investor concerns over global economic stability amid ongoing geopolitical uncertainties.
Currency markets have also been active, with the US Dollar experiencing a partial recovery following a retreat earlier in the week. Traders are cautiously positioning themselves ahead of the FOMC meeting minutes, which could provide insights into future monetary policy directions.
The GBP/USD pair's resilience can be linked to the UK's rising inflation figures, signaling potential adjustments in monetary policy by the Bank of England. As inflation pressures mount, market participants are closely monitoring central bank responses to maintain economic balance.