STOCKS

After a weaker start to the week, stock markets turned positive again, retaining bullish bias ahead of the weekend. Earlier in the week, US equities retreated in anticipation of Powell’s monetary policy updates to the House of Representatives and to the Senate. Fed Chair said that the central bank is not far from delivering rate cuts, adding that the bank is just waiting for additional data to confirm inflation is cooling. Wall Street stocks rose on Thursday, staying bullish ahead of the release of the February jobs report. The Nasdaq Composite added 1.5% as tech stocks took the lead during the session, while the Dow Jones gained about 0.3%. The S&P 500 rallied more than 1% to hit another record closing high. In Asia, Japan’s benchmark Nikkei 225 gaining 0.25% after the data showed that household spending fell 2.1% month-on-month in January versus the expected increase by 0.4%. Sydney’s S&P/ASX 200 jumped 1.07% to hit a new record high, while the Shanghai Composite gained 0.61% despite no fiscal stimulus measures from Beijing.

CURRENCIES

The USD index slipped to mid-January lows earlier on Friday before bouncing marginally, losing ground for the sixth session in a row. The dollar stayed pressured as Powell’s comments sent benchmark 10-year Treasury yields to a one-month low. Focus is now on US employment data, with the consensus forecasting that 200,000 new jobs were created in February, well down from January’s 353,000. After dipping to the 102.70 zone, the greenback has settled above 103.80 in European deals, struggling to regain the 104.00 mark ahead of a key jobs report that will set fresh direction for the buck. In a wider picture, the dollar has been on the defensive for the third consecutive week even as Fed rate cut excitations continue to wane. Since rejection from the 105.00 figure last month, the USD index struggles to attract renewed demand, with falling Treasury yields along with positive risk sentiment adding to the selling pressure surrounding the US currency.

OIL

After negative start to the week, Brent crude added more than 1% on Wednesday on a smaller-than-expected build in US crude inventories. The futures briefly derailed the $84 figure before finishing slightly below $83 amid some profit-taking. On Friday, crude oil prices continue to oscillate around this level, struggling for direction as demand has waned since a short-lived rally. According to the US Energy Information Administration, the US saw a smaller-than-expected 1.4 million barrels of crude stockpiles during the week ended March 1. Distillate and petrol inventories fell by much more than expected as well, suggesting that demand is picking up. Another reason behind the recent surge in oil prices was a weaker dollar. The selling pressure surrounding the buck intensified after Powell’s remarks. US Federal Reserve chair said that policymakers still needed greater confidence in inflation’s continued decline to cut its benchmark interest rate later this year.

GOLD

Gold prices have been rallying for the nineth session in a row on Friday, refreshing all-time highs these days. The bullion peaked in the $2,177 area earlier on Friday, clinging to the upper end of the extended trading range. The bullion attracted strong demand amid dollar’s retreat. Despite persistent bullishness in the gold market, the downside potential is rising at this stage, as investors may proceed to profit-taking after the spike. On the weekly timeframes, the technical picture turned even more positive, with wider picture staying upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,200 zone. Downside risks are limited while above the $2,100 zone. Should the metal face profit-taking, the immediate support could be expected around $2,150, followed by the $2,125 region and the $2,100 psychological level. Despite overbought conditions, gold could refresh record highs in the near term before retreating.

CRYPTO

After peaking at fresh record highs in the $68,900 area earlier in the week, the bitcoin price retreated partially amid profit-taking. However, the coin refrained from a major correction to resume the ascent after a short-lived decline. On Friday, the BTCUSD pair has been rising for the third session in a row, oscillating around the $67,000 figure ahead of the weekend. It looks like the largest cryptocurrency by market capitalization could extend the ascent both in the near- and medium term as the upcoming BTC halving event should complement the current demand from spot BTC ETF products. The technical picture is bullish as well, with the coin now holding above both the 50- and 200-DMAs, staying resilient despite overbought conditions. In the near term, BTCUSD needs to hold above the $67,000 level in order to stay afloat and make fresh bullish attempts in the coming days. Volatility has ebbed somehow since the latest rally, suggesting the coin could see some consolidation before deciding on the further direction.