Forex Today: The BoE is expected to ease its monetary stance

Pablo Piovano FXStreet

The US Dollar continued its slide on Wednesday, retesting multi-day lows against its peers amid a steady unravelling of positions and lingering uncertainty over Trump’s trade policies.

Here is what you need to know on Thursday, February 6:

The US Dollar Index (DXY) dropped for the third day in a row, extending the breakdown of the 108.00 support helped by lower yields across the board and intense risk-on mood. The usual Initial Jobless Claims are due, along with Challenger Job Cuts, and advanced Unit Labor Costs. In addition, the Fed’s Jefferson, Waller, and Daly are all due to speak.

EUR/USD rose to three-day peaks and looked to consolidate the recent breakout of the 1.0400 barrier. The HCOB Construction PMI is due in the euro area and Germany, seconded by Factory Orders in Germany, and Retail Sales in the bloc. Additionally, the ECB’s Nagel is expected to speak.

Another solid day saw GBP/USD advance to three-week highs past the 1.2500 hurdle in response to further weakness hurting the US Dollar. The BoE gathering will take centre stage, seconded by the S&P Global Construction PMI and the speech by Governor Bailey.

USD/JPY weakened further and put the 200-day SMA to the test near the 152.50 zone amid extra appreciation of the Japanese yen. The weekly Foreign Bond Investment figures will be published, will the BoJ’s Tamura will also speak.

AUD/USD climbed to multi-day highs, extending its weekly rebound to the boundaries of the key 0.6300 barrier. The Balance of Trade results for the month of December will be in the spotlight Down Under.

Prices of WTI resumed their downtrend, rapidly leaving behind Tuesday’s uptick and refocusing on the key $70.00 mark per barrel amid tariffs uncertainty.

Prices of Gold rose to an all-time peak near $2,880 per ounce troy on the back of safe haven demand and further selling pressure in the Greenback. Silver prices retreated marginally soon after hitting three-month highs around $32.50 per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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