South Korea’s Bank of Korea (BOK) Manufacturing Business Survey Index (BSI) improved from 70 to 73 in February. This index reflects positive feelings among businesses in the manufacturing sector. FXStreet provides various content about how economic factors affect different currencies. This includes changes in the Japanese Yen due to fiscal issues and a decline in the US Dollar Index near 97.00 because of uncertainty with the Federal Reserve.

Currency Pair Updates

Recent updates show AUD/USD staying above 0.6900, reaching 16-month highs, while USD/CAD is slightly up over 1.3700. The People’s Bank of China set the USD/CNY reference rate at 6.9858, up from 6.9843. NZD/USD has pulled back from recent four-month highs, falling closer to the mid-0.5900s due to profit-taking. Additionally, reports highlight Hyperliquid’s HIP-3 platform achieving a significant milestone and Tether Gold controlling 60% of the tokenized gold market. FXStreet highlights important economic updates and legal information about market risks. It emphasizes the need for independent research when making financial choices, reminding users that investments in the market carry significant risks. The platform does not provide personalized investment advice. The ongoing weakness of the US Dollar is creating clear trends, pushing currency pairs like EUR/USD above 1.1900 and GBP/USD near 1.3700. This is largely due to market expectations for a dovish Federal Reserve, particularly after recent US jobs data showed slower hiring than anticipated. Derivative traders might find value in call options on major currencies against the dollar, expecting this weakness to continue until the next Fed meeting.

Gold Momentum and Market Trends

Gold is gaining significant momentum, nearing $5,050. This reflects a broader risk-off sentiment fueled by geopolitical uncertainty and unclear central bank policies. In 2025, demand for tokenized gold surged as investors sought safe havens. The high implied volatility in gold derivatives creates opportunities, and traders may explore strategies that profit from price stability if upcoming Fed announcements ease market concerns. The increase in South Korea’s manufacturing BSI to 73 brings some regional optimism. This is backed by recent government data indicating a 4.2% year-over-year rise in semiconductor exports for December 2025, marking the first increase in sixteen months. This could signal a bottoming of the sector, prompting traders to consider bullish positions on the Korean Won or related equity indices. Central bank decisions this week will be crucial and likely lead to market volatility. The US Dollar Index is at a key support level around 97.00, and unexpected news from the Fed could cause a sharp market reaction. Traders should prepare for this by considering options strategies like straddles, which can benefit from significant price movements in either direction without needing to predict the outcome. Create your live VT Markets account and start trading now.

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