Friday’s session closed the week with balanced trading conditions, as markets avoided aggressive positioning ahead of upcoming March catalysts. The dollar retained most weekly gains but lacked momentum for further expansion.
EUR/USD
Technical Analysis
EUR/USD consolidated near support after several days of gradual selling. Price action suggested stabilization rather than continuation.
Fundamental Analysis
Markets appeared comfortable maintaining current expectations regarding Fed policy timing, limiting volatility.
GBP/USD
Technical Analysis
GBP/USD traded sideways into the close, signaling exhaustion in the corrective phase.
Fundamental Analysis
Sterling stabilized as traders reduced exposure ahead of the weekend.
USD/JPY
Technical Analysis
USD/JPY held elevated levels, forming a tight range consistent with trend continuation pauses.
Fundamental Analysis
Persistent yield advantages continued supporting the pair despite reduced momentum.
Market Outlook
The week concluded with three dominant themes:
- Dollar supported by steady yields and cautious Fed expectations
- EUR and GBP range-bound pending catalysts
- USD/JPY structurally bullish but increasingly headline-sensitive
With positioning reset and volatility compressed, markets entered the final week of February primed for larger directional moves once new macro signals emerged.