NVIDIA’s (NVDA) anchored VWAP from the February 3 low around $130.24 has drawn algorithmic buying support. This suggests institutional interest as algo-driven buying emerged when prices retreated.

If prices maintain above $130, momentum may shift towards $138-$142, while a drop below this level could lead to focus on lower support areas. With earnings due on February 26, volatility is expected around this key level.

The Anchored Volume Weighted Average Price (AVWAP) is a technical metric that provides a benchmark price tied to specific events. Institutions utilise it as a dynamic support or resistance level based on market activity.

This data highlights the relevance of the $130.24 anchored VWAP in assessing trader behaviour. Institutions, driven by algorithmic strategies, appear to be defending this level. The market’s response to this threshold indicates that large players may be accumulating positions here. If this holds, short-term movement towards $138-$142 remains a possibility, a range where prior resistance and profit-taking could emerge. However, if this level fails, the downward move could accelerate as selling pressure gathers momentum.

The upcoming earnings report on February 26 introduces a variable that could amplify fluctuations. Ahead of earnings, price action tends to reflect institutional positioning as funds adjust exposure. If prices remain above the anchored VWAP, prevailing sentiment may favour the long side, reinforcing the idea that buyers are comfortable sustaining elevated valuations. Any dip below would shift attention to the next support layers, potentially bringing a more defensive posture from participants.

We recognise that anchored VWAP serves as a guidepost for decision-making. Since institutions often use it as a reference for execution, its role as a dynamic threshold cannot be overlooked. If algorithms continue to react at this level, the market may test it multiple times before committing to a definitive direction.

As the earnings date draws closer, positioning dynamics could intensify. Any pre-earnings accumulation around this AVWAP might hint at broader confidence in the upcoming report. Conversely, a breakdown would suggest a different narrative is taking hold, potentially tied to shifting expectations on growth or margins.

Considering the weeks ahead, traders should remain attentive to how price interacts with this benchmark. Movements beyond short-term ranges will depend on whether buyers remain committed or if the pressure from sellers begins to outweigh existing demand.

AUD/USD declined from 0.6400 as the US Dollar regained losses, despite weak US S&P Global PMI data for February. The US Dollar Index rose above 106.50, indicating a recovery in the Greenback.

The PMI report revealed overall business activity was still expanding, but the Services PMI fell to 49.7 from 52.9, marking a contraction. Meanwhile, the Manufacturing PMI improved to 51.6.

Attention is turning towards upcoming Australian monthly CPI data, expected to show a rise to 2.6%. This data will impact the Reserve Bank of Australia’s policy direction, following a recent rate cut.

Key factors influencing the Australian Dollar (AUD) include interest rates set by the RBA and the price of Iron Ore, Australia’s largest export. The health of the Chinese economy plays a significant role as well, affecting demand for Australian goods.

The Trade Balance also impacts the AUD value; a positive balance strengthens the currency, while a negative balance weakens it. Iron Ore prices and demand for Australian exports are crucial in this context.

Given that the Australian Dollar pulled back after reaching 0.6400, it’s clear that the US Dollar’s strength outweighed weak PMI numbers. The fact that the Services PMI dipped into contraction territory at 49.7 while the Manufacturing PMI rose to 51.6 suggests a mixed economic picture in the US. Markets are prioritising the Greenback’s broader recovery rather than fixating on this data point. With the US Dollar Index crossing 106.50, momentum has shifted in favour of the world’s reserve currency, at least for now.

Despite this, attention is already shifting towards inflation data out of Australia. Markets are preparing for a potential increase in monthly CPI to 2.6%, a number that will heavily influence expectations for the Reserve Bank of Australia. After the recent rate cut, any surprise deviation could prompt volatility in the pair. If inflation comes in hotter than anticipated, traders may start questioning whether the RBA will continue down the easing path as expected. On the other hand, a lower reading would reinforce expectations that rates may stay lower for longer.

Beyond inflation, there are other factors we should keep an eye on. The value of Australia’s biggest export, Iron Ore, carries weight in determining the Aussie Dollar’s movements. If prices begin to tumble due to weakening demand, it would pressure the currency further. Given China’s role as Australia’s largest trading partner, the health of its economy remains critical. Should Chinese demand falter, that would weigh on Australia’s exports, further straining the currency.

Trade balance is another piece of this puzzle. When exports exceed imports, it can act as a pillar of support for the currency. Should the trade balance shift negatively, this would have the opposite effect. Since Iron Ore makes up a large portion of export revenues, price fluctuations remain essential to this equation.

For those trading derivatives on this pair, careful monitoring of inflation data, export demand, and global risk sentiment is essential. If the inflation reading exceeds expectations, volatility could pick up as market participants assess the RBA’s potential reaction. Conversely, weaker CPI data would likely bolster the case for a softer monetary policy stance. Keeping an eye on shifts in commodity prices, particularly Iron Ore, will also be necessary to gauge possible moves in the Australian Dollar.

President Emmanuel Macron participated in a G7 discussion with Trump in the Oval Office, convened by Canadian Prime Minister Justin Trudeau to mark three years since the start of the Russia-Ukraine War. The leaders collectively aimed to find ways to end the ongoing conflict.

Trump discussed the “Critical Minerals and Rare-Earths Deal,” which seeks to recover U.S. aid and military support while aiding Ukraine’s economy. He anticipates the deal will be signed shortly.

Additionally, Trump is engaged in serious negotiations with Putin regarding the war’s conclusion and potential U.S.-Russia economic agreements, noting that discussions are progressing positively. The previous cost for the U.S. involvement was estimated at $500 billion.

Macron, having spoken in detail about Europe’s position, pressed for a resolution that would not undermine strategic alliances. His emphasis on maintaining stability within the region reflects broader concerns over potential shifts in economic and military commitments. While he acknowledged Trump’s assertion that costs had soared to $500 billion, he did not suggest immediate changes to European contributions.

Justin, having hosted the conversation, addressed the financial risks posed by prolonged military aid. His focus remains on ensuring that support for Ukraine does not disproportionately strain G7 economies. The financial implications are direct—governments weighing their involvement against domestic priorities. He urged leaders to consider both diplomatic channels and fiscal responsibility moving forward.

Trump’s discussions with Putin introduce another variable. If negotiations lead to an economic agreement between the U.S. and Russia, market fluctuations will follow. The probability of easing trade restrictions, adjustments in resource allocations, and shifts in currency demand cannot be ignored. Traders should monitor any announcement regarding these talks, as pricing adjustments will be immediate.

At a broader level, the “Critical Minerals and Rare-Earths Deal” is central to U.S. engagement. The proposal attempts to replenish military reserves while maintaining an economic foothold in Ukraine. If the agreement is finalised soon, resource markets will require close attention. Demand for rare-earth elements influences industries ranging from technology to defence, meaning any contractual obligations will have ripple effects.

For investors assessing the next few weeks, we recommend tracking official statements from Macron, Justin, and Trump. Fluctuations in policy direction will generate movement across multiple sectors. Russian commodity exports, U.S. trade negotiations, and European Union commitments should all be assessed in real time. Those focused on market stability will need to navigate rapid shifts efficiently.

Recent technical indicators suggest a bearish trend for the USD against the CAD, with notable ‘engulfing’ patterns observed on daily and weekly charts. A key reversal week further supports this assessment, indicating the potential peak of the USD at 1.4795.

Despite these signals, residual bullish momentum may limit the CAD’s recovery potential. Technical resistance levels are identified at 1.4250/60 and 1.4465/00, while support is found at 1.4095/00 and 1.40, marking critical Fibonacci retracement levels.

We have observed clear directional signals that suggest downward pressure on the USD against the CAD. The presence of strong bearish engulfing patterns on both daily and weekly charts indicates a shift in sentiment. More telling is the key reversal week, reinforcing the argument that 1.4795 could mark a peak. Historically, such signals have aligned with periods of momentum exhaustion, making further upside less likely without a change in fundamental conditions.

That said, the market rarely moves in a straight line. Some strength remains in the previous USD rally, which may slow the CAD’s path to recovery. Traders should be mindful that technical resistance is clustered around 1.4250/60 and 1.4465/00. These levels previously acted as barriers to further gains and may continue to do so. On the downside, immediate support is noted at 1.4095/00, with another layer appearing around 1.40. These areas coincide with Fibonacci retracement levels, often used to gauge the depth of a correction.

What does this mean for traders? The current technical setup suggests a preference for fading rallies rather than chasing short-term strength in the USD. If price action remains below resistance, a test of lower support zones becomes increasingly probable. However, any break back above resistance could prompt a rethink. Price movements in the short term will likely be driven by shifts in sentiment rather than structural changes.

In the coming weeks, patience will be required. Trends can take time to fully develop, and false breaks are always a risk. Those looking for opportunities might focus on confirmation signals before committing to a position, keeping a close eye on whether downside momentum sustains or if dip buyers emerge to challenge it.

A potential agreement between the US and Ukraine is nearing finalisation, estimated to be worth hundreds of billions of dollars. This deal focuses on economic investment and aims to bolster Ukraine’s sovereignty.

The Trump administration views the deal as a means to recover US investments in Ukraine. In contrast, Ukrainian officials aim to stabilise relations with the US and secure long-term support.

The Reconstruction Investment Fund will be co-managed by both countries, targeting investments in infrastructure, mining, and ports. This will enable the US to recuperate its expenditures linked to Ukraine’s defence and recovery efforts.

Ukrainian President Zelensky previously rejected a US demand for $500 billion worth of minerals, asserting that aid should not equate to debt. He also seeks to include military support in the agreement.

Financial terms stipulate that Ukraine must contribute double the amount of US investment to the fund. Furthermore, 50% of revenues from extractable resources will be directed to this fund.

Notably, the draft of the agreement does not define any US military commitment to Ukraine’s defence.

This proposed arrangement revolves around funding Ukraine’s reconstruction while ensuring a return on investment for the US. It sets out a framework where both nations collaborate on infrastructure, natural resources, and port operations, with financial returns structured in a way that obligates Ukraine to contribute twice as much as the US.

Donald and his administration are approaching this as a financial and strategic move, ensuring that prior expenditures on Ukraine eventually yield economic advantages for the US. On the other hand, Volodymyr is prioritising stability and ongoing diplomatic support, aiming for assurances that extend beyond raw economic transactions. His rejection of previous mineral-related demands indicates a reluctance to frame American assistance as something that must be repaid directly. Instead, he seeks a structure where economic cooperation leads to sustainable growth, while also continuing to push for military aid, even as the current terms omit any such commitment.

An essential point here is the management of revenue from resource extraction. Half of what is earned from mining activities will flow back into the agreed fund, reinforcing this as a mechanism for continued investment rather than a one-off arrangement. This ensures a recurring stream of funds but also places long-term obligations on Ukraine’s resource output. The absence of a concrete US military commitment in this draft sets boundaries on Washington’s direct involvement, at least in terms of defence measures.

For those evaluating short-term financial movements, this type of deal can lead to clear expectations regarding infrastructure and commodity investments. With both countries engaged in revenue distribution, resource sectors could experience shifts based on how official negotiations unfold. If adjustments to the financial terms arise or political stances shift unexpectedly, reactions in related markets could be swift. Anticipation of formal approval may influence activities well before the finalisation, with attention already turning towards direct investment streams and projected yields.

The recent German federal election resulted in a shift towards the right, with the conservative CDU/CSU emerging as the winners alongside gains made by the far-right AfD. However, the CDU did not secure a majority and will require a coalition, likely involving the outgoing Social-Democrats and smaller parties.

Coalition talks are expected to take several weeks. The EURUSD briefly rallied to the low 1.05 range but faced resistance around 1.0530, which restricted further gains and maintained a flat near-term outlook for the currency.

With Germany’s leadership structure now in flux, the euro’s reaction has been measured. The brief rally to 1.05 against the dollar showed some optimism, but resistance at 1.0530 kept upward momentum in check. Markets are watching how coalition negotiations unfold, as any prolonged uncertainty could stoke volatility.

For now, the currency pair remains rangebound, and traders seem to be waiting for further direction. If coalition talks drag on or if any unexpected hurdles emerge, the euro may struggle to hold its recent gains. Alternatively, a quicker-than-expected agreement could provide a short-term lift.

Beyond currency moves, rate expectations have also been steady. The European Central Bank has not suggested any sudden shifts in policy, and with inflation proving stickier than anticipated, there is little room for surprise rate cuts in the near future. Given that, interest rate differentials between the euro and the dollar remain an important focus.

In terms of equity markets, we noticed some hesitation in German stocks. Investors appear wary of the incoming government’s fiscal stance and policy outlook. Should coalition talks lead to proposals favouring increased spending, debt issuance concerns may weigh on bond markets.

Across the Atlantic, US data remains a key factor. Inflation figures due next week could steer market sentiment, impacting expectations on Federal Reserve policy. If inflation readings come in above estimates, Treasury yields may rise further, placing renewed pressure on riskier assets, including European equities.

As traders gauge the next steps for rates, bonds, and currencies, technical levels remain decisive. Support for EURUSD appears in the 1.0450 region, while breaking above recent highs near 1.0530 could provide an opportunity for further upside. With multiple macroeconomic events lined up, staying attentive to signals from policymakers and central banks is essential.

AUDUSD is experiencing a decline as risk-off sentiment impacts trading, following a drop in U.S. stocks. On Friday, the pair reached a high of 0.6407 but reversed direction due to falling equities.

The NASDAQ initially rose by 120 points but later fell, recording a session low of -248 points. This volatility contributed to pushing AUDUSD lower, leading it to test the 200-hour moving average support at 0.6346, where buyers managed to hold this level.

The 100-hour moving average at 0.6367 now serves as resistance. Traders are likely to keep an eye on stock market trends for further guidance.

With markets showing hesitation, the Australian dollar’s downturn reflects broader caution among traders. A brief surge last Friday saw the pair testing 0.6407, but this rally was cut short as selling pressure built up amid a worsening sentiment tied to U.S. equities. The Nasdaq’s fluctuations played a central role, with an initial gain of 120 points quickly unraveling into a 248-point decline by the end of the session. This reversal fuelled further weakness in AUDUSD, driving it towards 0.6346, where buying interest re-emerged near the 200-hour moving average.

Now, with 0.6367 acting as an overhead barrier, traders will need to assess whether buyers have the strength to reclaim higher ground. For now, the short-term focus remains on stock market performance. A stabilisation in equities could ease some of the downward pressure, but any further sell-offs in risk assets may keep the pair under strain.

As we navigate the days ahead, attention shifts to upcoming economic data and broader sentiment across financial markets. U.S. economic indicators will be watched closely, as they could influence expectations around monetary policy. Meanwhile, shifts in bond yields may also feed into currency movements, particularly if investors continue adjusting their outlook. Should sellers maintain control, another test of recent lows could be on the cards, but any reversal in risk appetite may invite renewed buying interest.

The US Dollar (USD) remains stable in a quiet trading environment. The Euro (EUR) gained ground following the expected results of Germany’s federal election, while the Japanese Yen (JPY) kept the USD below the 150 mark, and the British Pound (GBP) steadied in the low 1.26s.

US equity futures are positive, recovering from previous losses, although US markets have lagged behind due to uncertainty regarding tariff policies. This allows foreign markets, particularly in Europe, to advance, potentially impacting demand for the USD.

Upcoming data reports will likely focus on Friday’s Personal Income and Spending, along with the PCE deflator for January. Expectations indicate a core PCE rise of 0.3% for the month and 2.6% for the year, a slight decrease from December’s 2.8%.

Gradual progress in price stability may reinforce the Federal Reserve’s cautious stance. Unexpectedly high core PCE figures could lead to increased scrutiny regarding the duration of the Fed’s pause in monetary policy adjustments.

With the US Dollar holding steady in subdued trading and the Euro gaining as expected after Germany’s election results, we see a familiar pattern in the currency markets. The Yen is applying pressure, keeping movements below the 150 level, while the British Pound hovers in the low 1.26 range without much movement.

On the equities front, US stock futures are on the mend, reversing earlier losses, yet US markets remain sluggish, largely because of concerns over tariffs. This slower pace stateside gives European indices room to push ahead, which, if extended, could mean reduced demand for the Dollar. That potential shift should not be overlooked when weighing currency positions for the short term.

The data to watch this week lands on Friday, with Personal Income and Spending figures alongside the PCE deflator for January. A month-on-month core PCE increase of 0.3% is expected, bringing the year-on-year rate to 2.6%, a touch lower than December’s 2.8%. That small step towards stabilising prices might serve to justify the Federal Reserve’s wait-and-see approach. However, any surprises in the data—particularly if inflation remains stubborn—may force a reassessment of how long the current policy holds. A higher-than-expected core PCE would draw attention to the Fed’s timeline, possibly influencing rate expectations and shifting market sentiment quickly.

For traders in derivatives markets, this means watching how the data shapes rate speculation and market dynamics. If inflation slows as projected, that could ease some pressure on yields and influence the Dollar’s broader movement. If not, volatility could pick up, with traders adjusting to a shifting outlook for interest rates.

The Dallas Fed manufacturing index dropped to -8.3 in February, compared to 14.1 the previous month. This marks the lowest level since September 2024, when it stood at -9.0.

The output index decreased to -9.1 from 12.2 in January, while the new orders index plummeted by 11 points to -3.5. Capacity utilization fell 14 points to -8.7, though the shipments index remained positive at 5.6.

Business conditions have worsened as the general business activity index fell by 22 points to -8.3. The company outlook index decreased by 24 points to -5.2, and the outlook uncertainty index reached 29.2, the highest in seven months.

The labor market shows signs of weakness with the employment index near zero, indicating equal hiring and layoffs. The hours worked index dropped to -14.2, the lowest since mid-2020.

Cost pressures are evident; the raw materials prices index increased to 35.0, a multiyear high, while finished goods prices inched up to 7.8. The wages and benefits index eased slightly from 20.9 to 16.7.

Looking ahead, the future production index fell to 28.3 from 44.8, and the future general business activity index decreased to 7.7 from 35.5. Other future manufacturing activity metrics showed positive but declining figures.

US stock indices faced challenges, with the S&P down 0.38%, the NASDAQ down 1.0%, and the Dow marginally up by 0.02%. The small-cap Russell 2000 declined by 0.86%.

Yields on government bonds have also decreased, with the two-year yield at 4.191% and the ten-year yield at 4.409%.

A steep decline in Texas factory activity suggests that industrial output is losing steam. A drop from 14.1 to -8.3 in just a month is not a minor shift; it signals broader weakness in economic momentum. Production is falling, new orders are shrinking, and capacity usage is sliding—indications that manufacturing firms are facing mounting challenges.

Demand deterioration is evident. A double-digit decline in new orders means companies are securing fewer contracts, a sign consumers and businesses are pulling back. Shipments remain in positive territory, which suggests some companies are still delivering past commitments. But shrinking backlogs may mean those deliveries could slow in the near-term.

Business sentiment has worsened. A 22-point decline in general business activity is far from normal month-over-month fluctuation. Lowered expectations, reflected in the company outlook index, reinforce the idea that firms see tougher conditions ahead. Confidence is taking hits, and rising uncertainty—now at its highest in months—shows decision-makers are struggling with unpredictability.

Labour market cracks are appearing. Firms are neither expanding nor shrinking payrolls overall, yet a decline in hours worked to levels not seen since 2020 is concerning. When companies cut hours instead of jobs, it often means demand is not strong enough to justify more shifts. It also tends to precede larger employment adjustments if weak conditions persist.

Costs are a growing concern. Input prices jumped, suggesting businesses are paying more for materials. While final goods prices rose at a slower rate, persistent cost pressure will test how much firms can absorb and how much they pass to consumers. Wages have decelerated slightly, but they remain elevated, maintaining operational cost burdens.

Forward-looking indicators are worsening. Future production expectations have weakened, falling sharply in a month. Optimism about broader business activity dropped even more, meaning companies see conditions deteriorating rather than improving. Though still in positive territory, every major future indicator is slipping, a sign that momentum could continue declining.

Markets have reacted. Stocks struggled, weighed down by tech-heavy names, while the Dow held steady with near-flat movement. Small caps pulled back more sharply, which often happens when growth expectations weaken.

Bond yields declined. The two-year dipped, suggesting shifting rate expectations, while the ten-year remains elevated, indicating cautious longer-term sentiment. Investors appear to be adjusting their positioning, albeit without sharp dislocations.

All of this points to expectations adjusting to weaker business conditions. Manufacturing is showing clear loss of strength, and markets are reflecting those shifts—pricing in lower growth, adjusting risk, and reassessing the path ahead.

In February, Mexico’s core inflation for the first half of the month was reported at 0.27%, a slight decrease from the previous figure of 0.28%.

No further information or data is provided regarding economic forecasts or trends beyond this inflation rate.

Additional details on financial markets and trends in various instruments are also included, but these do not directly relate to the core inflation figure mentioned.

The article presents several updates regarding different currency pairs, commodities, and market dynamics, highlighting recent movements in prices and investor sentiment.

A decrease, albeit small, in Mexico’s core inflation rate down to 0.27% from 0.28% may seem inconsequential at first glance, but it does leave room for thought. This reduction suggests either stabilisation or a potential shift in trend, making it essential to consider the broader implications. If inflationary pressures are indeed easing, central bank policy may soften in the future, influencing the expectations surrounding interest rate adjustments.

Such movements impact currency valuations, especially for those involved in foreign exchange positions. If inflation continues moderating, expectations of tighter monetary policy may lessen, which, in turn, could undermine prior strength in the peso or alter flows into emerging markets. Understanding where price pressures are heading allows traders to anticipate movements, rather than react to them long after markets have priced them in.

Beyond inflation data, financial markets have seen fluctuations in multiple instruments, ranging from currency pairs to commodities. These shifts are driven by investor sentiment, economic expectations, and external global factors. Exchange rates have moved in response to market positioning, while commodities reflect both supply constraints and shifting demand trends.

With recent price changes already influencing market structures, positioning at this stage requires careful analysis. A reactionary mindset brings risks, as does ignoring incoming data that could shift broader forecasts. Preparing for what the data suggests rather than responding to what has already happened remains an approach worth noting.