Forex Today: Dollar up in a slow start to a busy week

FXStreet Team FXStreet

What you need to know on Tuesday, February 2:

The American dollar appreciated sharply against most major rivals, with European currencies being the worst performers. The EUR/USD pair trades near a daily low of 1.2062 heading into the Asian session, despite upwardly revised Markit PMIs, and a worse than anticipated US ISM Manufacturing index. The Sterling pound also edged lower against the greenback, trading not far above the 1.3655 daily low.

Commodity-linked currencies were under mild-pressure. AUD/USD finished the day little changed in the 0.7630 price zone, trapped between greenback’s demand and firmer bright metal prices. The USD/JPY pair kept advancing, reaching 105.03.

Global equities closed in the green, despite not so optimistic news. Concerns gyrated around news indicating that a group of US Republican senators have called for President Joe Biden to scale down his $1.9 billion stimulus plan, and reportedly floated a $600 billion alternative to garner bipartisan support.

Silver soared over 11%, hitting a daily high of 30.09 to later settle at $28.80 an ounce. Gold benefited from retail investors’ demand, ending the day around $1,860 a troy ounce. Crude oil prices surged during the American afternoon,

CCIV stock price and news: Churchill Capital Corp IV corrects and scores a potentially Reddit induced session high

Cryptocurrencies Price Prediction: Litecoin, Polkadot & Yearn.Finance – American Wrap 1 February

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.