Market Wrap Summary - February 17, 2026
By Elior Manier
Market Overview
The North American trading session on February 17, 2026, was characterized by a lack of volatility, following a dull previous session. Despite the return of US traders, market movements remained subdued, particularly in equities, while commodities and precious metals experienced slight declines due to unwinding risk premiums related to US-Iran developments.
Key Economic Data
Traders had access to various economic data, including the Canadian Consumer Price Index (CPI), UK employment figures, EU surveys, and speeches from central bank officials. However, most attempts to establish directional trades resulted in profit-taking and mean reversion.
US Treasury Yields
The US 10-Year Treasury Yield hovered around 4%, a critical level that has been tested multiple times without consistent breaches. The yield is forming a peculiar Head & Shoulders pattern, which, if it materializes, could suggest a decline to 2.50%. This potential shift could have significant implications for the markets, particularly in terms of quality assets.
Commodity Performance
Commodities showed a clear downward trend, reflecting a typical unwinding of geopolitical risk premiums. Traders are advised to be cautious about fading this trend, especially as positive developments in US-Iran talks could influence market sentiment. However, potential re-entry points may arise after further retracements in metals and oil.
European Equities
In contrast to the US market, European equities performed well despite disappointing EU survey results. The market is beginning to reprice the odds of interest rate cuts, although these expectations remain distant. European stocks, being more defensive and closely tied to manufacturing, may benefit from gradual gains driven by advancements in artificial intelligence.
Currency Performance
Currency performance was largely rangebound, with the British Pound suffering significant losses following a poor UK labor report. The US Dollar experienced a volatile session, characterized by a pump-and-dump pattern, which traders are closely monitoring.
Upcoming Economic Events
Looking ahead, the economic calendar is packed with significant releases, including the Reserve Bank of New Zealand's rate decision, which will be the first under new Governor Anna Breman. Additionally, UK CPI data is expected to draw attention from traders.