Date 23 February 2026
Market Sentiment
Markets are cautiously positioned as currencies adjust to renewed uncertainty in U.S. trade policy and weakening dollar dynamics. The U.S. dollar has softened after a major U.S. Supreme Court decision disrupted tariff policy and catalysed volatility in risk assets, while safe-haven flows have supported the yen and Swiss franc. European and British currencies are showing resilience, but global risk sentiment remains tempered amid tariff policy unpredictability and geopolitical concerns.
Previous Session Recap
• The U.S. dollar weakened against major counterparts as tariff uncertainty weighed on U.S. trade and fiscal outlooks.
• Euro and British pound strengthened modestly as risk appetite improved in early European trade.
• Yen and Swiss franc gained amid safe-haven flows and global market caution.
• Equity futures declined on tariff policy confusion, while precious metals rallied as strategic assets.
Top Overnight Global Forex Headlines
• U.S. Supreme Court strikes down broad tariff mandates, triggering dollar weakness and fiscal uncertainty.
• Wall Street futures fall alongside the dollar after tariff policy confusion.
• Safe-haven currencies (JPY, CHF) supported amid risk repricing.
• Gold and silver rally as investors seek hedges against volatility.
Focus of the Day
• U.S. macro and sentiment data While major U.S. headline releases are limited today, traders will watch how markets digest tariff policy developments and positioning ahead of upcoming global PMI and sentiment indicators.
Key Economic Events
• Several low-impact national PPI and industrial data releases have occurred; the day is otherwise light on headline releases, leaving markets to price geopolitical and policy developments as the main drivers.
Major Currency Outlooks
USD — Bearish Bias
The dollar has weakened across major currencies amid tariff policy confusion and risk repricing. This environment undermines the dollar’s safe-haven appeal in the near term.
EUR — Bullish to Neutral
The euro is supported by positive sentiment, stronger positioning, and broad dollar weakness, though upside could be capped by risk sentiment.
GBP — Slightly Bullish
Sterling is showing resilience alongside broader European FX strength, benefiting from risk sentiment recovery.
JPY & CHF — Safe Haven Support
Yen and Swiss franc have strengthened as traders hedge against uncertainty, keeping these pairs structurally supported.
Commodity Currencies (AUD, NZD, CAD)
Mixed dynamics persist; commodity FX will react to global risk sentiment and commodity prices, while still influenced by broader risk patterns.
Commodities Watch
Gold (XAU/USD) Prices are elevated as safe-haven demand increases amid dollar weakness.
Silver (XAG/USD) Silver rallies alongside gold as investors seek precious metals exposure.
Oil (WTI & Brent) Crude prices have softened modestly but remain influenced by broader demand prospects and geopolitics.
Copper Copper remains in a relatively sideways range with modest gains, reflecting subdued industrial demand signals.
Key Technical Zones
Currencies (Indicative, subject to live changes)
• EUR/USD Support ~1.1780 – 1.1750 | Resistance ~1.1850 – 1.1900
• GBP/USD Support ~1.3480 – 1.3450 | Resistance ~1.3550 – 1.3600
• USD/JPY Support ~154.00 – 153.50 | Resistance ~156.00 – 156.80
• AUD/USD Support ~0.7065 – 0.7040 | Resistance ~0.7115 – 0.7150
• NZD/USD Support ~0.5970 – 0.5950 | Resistance ~0.6020 – 0.6050
• USD/CAD Support ~1.3640 – 1.3620 | Resistance ~1.3700 – 1.3750
Commodities
• Gold (XAU/USD) Support ~5,150 – 5,130 | Resistance ~5,220 – 5,250
• Silver (XAG/USD) Support ~85.0 – 83.5 | Resistance ~88.0 – 90.0
• WTI Crude Oil Support ~64.0 – 63.0 | Resistance ~66.0 – 67.5
• Brent Crude Oil Support ~70.0 – 69.0 | Resistance ~72.0 – 73.0
• Copper Support ~5.80 – 5.75 | Resistance ~6.00 – 6.05
Trader’s Takeaway
• Dollar weakness is the dominant theme as FX markets absorb tariff policy uncertainty and risk repricing.
• European and British currencies are relatively well-supported, but risk momentum is fragile.
• Safe-haven FX (JPY, CHF) and precious metals remain strong performers in volatility plays.
• Commodity currencies will continue to reflect broader risk appetite and commodity price action.
• Use key technical zones to manage trades effectively, especially around support breaks and resistance tests.
About LMFX
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Disclaimer
This content is for informational and educational purposes only and does not constitute financial advice or investment recommendations. Trading leveraged products such as Forex and CFDs involves risk and may not be suitable for all traders. Past performance does not guarantee future results. Participation in any prop trading evaluation does not guarantee funded account status or profitability. Always trade responsibly.
