In the European session on Wednesday, the GBP/USD held steady above 1.2600, reflecting the market's cautious optimism. The UK's annual CPI inflation rose to 3% in January, up from 2.5% in December, signaling potential economic shifts. Meanwhile, gold prices reached new lifetime highs near $2,950, driven by persistent trade war fears that continue to support safe-haven assets.
The Reserve Bank of Australia's (RBA) interest rate strategy appears to be working as expected, as noted by Michele Bullock. The central bank's decision to cut interest rates has effectively slowed economic activity and curbed inflation. This development aligns with the broader trend of higher interest rates impacting economic growth and inflation dynamics.
In contrast, the US Dollar bulls find themselves on the defensive amid growing expectations of a Federal Reserve rate cut. The upcoming release of the Fed Minutes is anticipated to have a significant impact on market sentiment and direction.
Another notable development in the financial markets is the performance of Maker (MKR), which extended its gains by 6% on Wednesday. Trading around $1,189, MKR has rallied over 20% this week alone. According to Artemis data, MKR generated $10 million in revenue on February 10, marking a new yearly high in daily revenue for the cryptocurrency.