Forex Today: The dollar remains on the backfoot

Valeria Bednarik FXStreet

What you need to know on Wednesday, February 2:

The greenback remained on the backfoot on Tuesday, although losses were limited across the FX board. The EUR/USD pair is ending the day pretty much unchanged in the 1.1240/50 area after dismal EU data put a cap to the shared currency.

GBP/USD shrugged off UK's political turmoil and retained gains at the end of the day, trading at around 1.3510. The AUD/USD pair also holds near intraday highs in the 0.7110 region despite the RBA refusing to hint at a sooner rate hike. The USD/CAD pair ended the day unchanged amid the weaker tone of oil prices.

Asian and European indexes got to close with gains, but Wall Street spent the day struggling around its opening level, trading mixed but directionless.

Government bond yields started the day on the backfoot, recovering during US trading hours amid generally positive local data. The yield on the 10-year US Treasury note bottomed at 1.73% and currently stands at 1.80%.

US Federal Reserve officials were on the wires, giving mixed signals to those speculating on rate hikes' dates. Bullard said that we would support a hike in March, although he prefers to delay it to May. Earlier in the day, Atlanta's Bostic noted that there is a "real danger" of expectations drifting from the Fed's 2% to 4% or higher. Overall, officials are paving the way to lessen the impact of hikes in stocks.

Gold is hovering around the $1,800 level, incapable of extending gains. Crude oil prices seesawed between gains and losses, ending the day marginally lower. WTI currently trades at $87.90 a barrel.

New Zealand employment figures will bring some action during the Asian session as investors get ready for Thursday's ECB and BOE announcements.

Top 3 Price Prediction Bitcoin, Ethereum, XRP: Cryptos eyes new uptrend in February

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold remains offered below $4,500 following US Payrolls

Gold prices trade with a bearish bias and still remain below the key $4,500 mark per troy ounce at the end of the week. The slighlty softer tone in the US Dollar alongside mixed US Treasury yields across the curve also keep the yellow metal’s downside somewhat contained.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.