Forex Today: US Dollar holds ground after Powell interview, eyes on PMI data

Eren Sengezer FXStreet

Here is what you need to know on Monday, February 5:

The US Dollar (USD) stays resilient against its rivals to start the week following Friday's impressive upsurge. Souring market mood on escalating geopolitical tensions and Federal Reserve (Fed) Chairman Jerome Powell's hawkish remarks provide further support to the currency as market focus shifts to the ISM Services PMI report.

The USD Index (DXY) gained nearly 1% on Friday after the monthly report published by the Bureau of Labor Statistics showed that Nonfarm Payrolls rose by 353,000 in January, surpassing the market expectation of 180,000 by a wide margin. In a televised interview with CBS News’s 60 Minutes early Sunday, Powell repeated that the March policy meeting was likely too soon to have the confidence to start cutting rates. He also reiterated that they could move sooner if they saw labor market weakness or inflation coming down persuasively. The DXY pushed higher and touched its strongest level since early December above 104.00 in the early trading hours of the Asian session before retreating slightly into the European morning.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Pound Sterling.

	USD	EUR	GBP	CAD	AUD	JPY	NZD	CHF
USD		0.01%	0.10%	0.00%	-0.16%	-0.13%	-0.20%	0.07%
EUR	0.00%		0.10%	0.00%	-0.17%	-0.14%	-0.21%	0.06%
GBP	-0.11%	-0.10%		-0.10%	-0.28%	-0.23%	-0.30%	-0.04%
CAD	0.00%	0.00%	0.10%		-0.17%	-0.14%	-0.21%	0.08%
AUD	0.16%	0.18%	0.27%	0.17%		0.04%	-0.04%	0.25%
JPY	0.12%	0.13%	0.21%	0.13%	-0.03%		-0.09%	0.21%
NZD	0.18%	0.20%	0.29%	0.20%	0.02%	0.05%		0.26%
CHF	-0.11%	-0.07%	0.03%	-0.07%	-0.27%	-0.20%	-0.27%

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).

Meanwhile, geopolitical tensions remain high at the beginning of the week following news of the US and the UK conducting a new wave of airstrikes on the Iran-backed Houthi militant group in Yemen over the weekend, hitting at least 30 targets. In retaliation, Yemen’s Houthi rebels vowed to extend their military operations and threatened to respond to the latest set of strikes. Reflecting the risk-averse market atmosphere, US stock index futures are down about 0.25% early Monday.

EUR/USD declined sharply on Friday and closed the third consecutive week in negative territory. The pair was last seen trading in a tight channel below 1.0800. HCOB will release revisions to January Services and Composite PMIs for Germany and the Eurozone.

GBP/USD continues to push lower toward 1.2600 after losing 0.9% on Friday. Bank of England Chief Economist Huw Pill will participate in an online Q&A at 17:30 GMT on Monday.

USD/JPY stretched higher in the Asian session on Monday and came within a touching distance of 149.00, setting its highest level since late November in the process. With the JPY benefiting from the souring risk mood, however, the pair retreated below 148.50.

Gold erased a large portion of its weekly gains on Friday as the benchmark 10-year US Treasury bond yield recovered above 4% after strong US labor market data. With the 10-year yield staying in positive territory early Monday, XAU/USD trades in the red at around $2,030.

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.

GBP/USD retreats below 1.3350; Fed Minutes in focus

GBP/USD struggles to find its footing and trades in negative territory below 1.3350, pressured by the renewed USD strength. US President Donald Trump said on the MoU signed with Iran to end the conflict was "over", causing safe-haven flows to dominate the action in financial markets. Later in the American session, the Fed will publish the minutes of the June policy meeting.

EUR/USD tests 1.1400 as USD gathers strength on Trump comments

EUR/USD comes under bearish pressure on Wednesday and declines toward 1.1400. US President Trump said the MoU signed with Iran to end the conflict was "over" and added that the didn't want to engage with Tehran anymore, triggering a flight-to-safety and boosting the USD.

Gold drops below $4,100 as Middle East tensions escalate

Gold turns south on Wednesday and trades deep in negative territory near $4,050 on Wednesday. Investors adopt a cautious stance and help the USD gather strength after US President Trump said at the NATO summit that the MoU signed with Iran to end the conflict was "over" and added he didn't want to engage with Tehran.

Pi Network crashes to a record low amid broader market stress

Pi Network (PI) price edges toward $0.1000 extending losses for the fifth straight day. Retail sentiment remains bearish as Open Interest and the funding rate decline. The technical outlook for PI is bearish as selling pressure mounts, despite oversold conditions.

Fed Minutes to shed light on Warsh's first meeting as Chair

The United States (US) Federal Reserve (Fed) will release the Minutes of the June 16-17 Federal Open Market Committee (FOMC) meeting on Wednesday at 18:00 GMT. The Minutes should shed more light on the Fed’s hawkish hold delivered at Kevin Warsh’s first meeting as Fed Chair. Even so, doubts remain about how much the minutes will reveal, given Warsh's refusal to provide forward guidance.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.