|

Forex Today: Indecisive action in currency markets continues

Here is what you need to know on Friday, February 9:

The US Dollar (USD) gathered strength against its rivals on Thursday as US yields stretched higher. The lack of risk aversion, as reflected by the resilience of US stock indexes, however, made it difficult for the currency to outperform its rivals later in the day. There won't be any high-tier data releases from the Euro area nor the US on Friday. Statistics Canada will release January jobs report in the early American session.

Canada Jobs Report Preview: Unemployment rate forecast to rise.

The USD Index holds steady slightly above 104.00 in the European morning on Friday and the 10-year US T-bond yield moves sideways at around 4.15%. After Wall Street's main indexes registered small gains on Thursday, US stock index futures trade marginally lower.

US Dollar price this week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the New Zealand Dollar.

 USDEURGBPCADAUDJPYNZDCHF
USD 0.04%0.00%-0.09%0.03%0.56%-1.09%0.86%
EUR-0.04% -0.04%-0.13%-0.02%0.52%-1.13%0.82%
GBP0.00%0.04% -0.09%0.03%0.56%-1.08%0.86%
CAD0.10%0.14%0.09% 0.12%0.65%-1.00%0.95%
AUD-0.03%0.02%-0.02%-0.12% 0.54%-1.11%0.83%
JPY-0.57%-0.53%-0.58%-0.65%-0.53% -1.67%0.30%
NZD1.08%1.12%1.08%0.99%1.10%1.63% 1.93%
CHF-0.87%-0.83%-0.88%-0.97%-0.84%-0.30%-1.97% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Markets expect the Unemployment Rate in Canada to tick up to 5.9% in January and see the Net Change in Employment coming in at +15K following December's uninspiring 0.1K increase. USD/CAD fluctuates at around 1.3450 ahead of the labor market data.

EUR/USD staged a rebound in the second half of the day on Thursday and to close virtually unchanged. The pair fluctuates in a tight channel below 1.0800 early Friday. Italy's Industrial Output data for December will be released later in the European session. Meanwhile, Germany's Destatis confirmed that the annual Consumer Price Index rose 2.9% in January.

Following a two-day rebound, GBP/USD lost its bullish momentum on Thursday and registered small losses. Nevertheless, the pair holds steady above 1.2600 in the early European session on Friday.

USD/JPY rose sharply on Thursday and touched its highest level since late November above 149.00. The pair stays in a consolidation phase below 149.50 to begin the last trading day of the week.

Gold struggled to make a decisive move in either direction for the second straight day on Thursday. In the European session on Friday, XAU/USD continues to move up and down in a narrow band above $2,030.

AUD/USD closed in negative territory on Thursday but recovered above 0.6500 in the Asian session. NZD/USD gained traction early Friday and was last seen rising more than 0.5% on the day at around 0.6100.

Author

Eren Sengezer

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.

More from Eren Sengezer
Share:

Editor's Picks

AUD/USD remains below 0.7000 amid light trading

AUD/USD fills a modest bearish gap on Monday, but remains below 0.7000 in the Asian session amid holiday-thinned liquidity. The US Dollar attempts a bounce even as US bond yields pull back from multi-year highs, limiting the pair. Moreover, diminishing odds of another RBA rate hike in November cap the Aussie.

USD/JPY hovers above 158.00 amid Japan/ US holiday

USD/JPY extends its range-bound price action into a new week, trading above 158.00 as bulls remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, softer US bond yields keep US Dollar bulls on the back foot and cap the pair's upside. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold  remains vulnerable below $4,200 on Fed hike bets

Gold is under mild selling pressure on Monday, trading at around $4,170. The US Dollar advances modestly in thin trading, supported by bets that the Federal Reserve will hike rates at least one more time before year-end.

Bitcoin struggles as ETF outflows, geopolitical uncertainty weigh

Bitcoin hovers around $83,600 on Monday after a 3.1% correction last week. US-listed spot ETFs recorded an outflow of $681.10 million last week, snapping the three-week inflow streak. Geopolitical uncertainty and mixed signals keep investors cautious.

The week ahead: A critical week as earnings and CPI test market

The Oil price is relatively stable this morning, and US and European stock markets are poised to open higher, as risk sentiment shrugs off an escalation in the Middle East and concerns about rising bond yields.

Has Bitcoin really escaped the macro forces it was built to fight?
Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?