Forex Today: Dollar keeps its footing after NFP-inspired rebound

Eren Sengezer FXStreet

Here is what you need to know on Monday, February 7:

The greenback is staying resilient against its rivals at the start of the week following Friday's rebound, which was fueled by the upbeat January US jobs report. There won't be any high-tier macroeconomic data releases on Monday and major currency pairs are likely to move sideways. US stock index futures are trading flat and the benchmark 10-year US Treasury bond yield stays calm near 1.9% early Monday, pointing to a neutral market mood.

The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls (NFP) rose by 467,000 in January. This print surpassed the market expectation of 150,000 by a wide margin. Additionally, the publication revealed that the annual wage inflation, as measured by the Average hourly Earnings, jumped to 5.7% from 5% in December, beating analysts' estimate of 5.2%. Supported by these figures, the US Dollar Index snapped a five-day losing streak on Friday. The index is clinging to small daily gains above 95.50 on Monday.

NFP Quick Analysis: America overcomes Omicron, more fuel for the Fed and the dollar

EUR/USD retreated modestly from multi-week highs on Friday but ended up gaining more than 300 pips on a weekly basis. The pair is trading in a tight range below 1.1450 heading into the European session.

GBP/USD stays above 1.3500 following Friday's decline. The Bank of England adopted a cautious tone on the UK economic outlook following the rate hike decision, limiting the pound's upside.

USD/JPY capitalized on rising US Treasury bond yields last week and climbed above 115.00. The pair posts small daily gains near 115.30.

Gold continues to trade above $1,800 after closing the previous week in the positive territory. In case US T-bond yields start to retreat, XAU/USD could gather bullish momentum.

Bitcoin climbed above $40,000 on Friday and spent the weekend in a consolidation phase. BTC/USD continues to push higher early Monday and was last seen trading at $42,700. Ethereum closed the previous four trading days in the green and reclaimed $3,000 at the start of the week.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.