ECB representatives took a less "hawkish" position. Gold intercepted the initiative from the dollar.
Friday's rally of the S&P 500 (US500) to a new record high limited the liquidity demand for the US dollar. However, the euro did not capitalize on this opportunity, causing the price to flatline throughout the day. The euro suffered minor losses amid "dovish" comments from ECB President Lagarde and ECB Governing Council representative Centeno.
Lagarde said the latest data in the Eurozone is encouraging, while Centeno said the ECB should be ready for an interest rate cut in March. The odds of a Fed rate cut at the April 30-May FOMC meeting have fallen to 23% from 75% a month ago. Meanwhile, swaps are priced at a -25 bps chance of an ECB rate cut at 34% at the April 11 meeting
We have NFP coming up
We have the last few days of Feb
The closing of the 4th quarter for 2023 financial year
Closing of future contracts in this week as well