Here is what you need to know on Thursday, February 3:
The dollar managed to stage a modest rebound in the late American session on Wednesday but the US Dollar Index ended up closing the fourth straight trading day in the negative territory. Ahead of the European Central Bank's (ECB) and the Bank of England's (BOE) highly anticipated policy announcements, major currency pairs stay relatively quiet. Later in the session, weekly Initial Jobless Claims, December Factory Orders and January ISM Services PMI will be featured in the US economic docket.
Meanwhile, US stocks futures indexes are down between 0.3% and 0.5%, pointing to a cautious market mood early Thursday.
The ECB is widely expected to keep its policy settings unchanged following the February policy meeting but ECB President Christine Lagarde's comments on the inflation outlook will be watched closely by market participants. On Wednesday, Eurostat reported that the annual HICP in the euro area reached an all-time high of 5.1% in January.
ECB February Preview: Euro bulls hope for a hawkish ECB on hot EU inflation.
The BOE is set to hike its policy rate by 25 basis points to 0.5%. Investors want to know how the bank plans to unwind its massive QE and whether or not additional rate hikes will be needed later this year.
BOE Preview: Bailey needs to go beyond a rate hike to boost GBP/USD on Super Thursday.
EUR/USD climbed to a fresh weekly high of 1.1331 on Wednesday before going into a consolidation phase around 1.1300 early Thursday. A hawkish ECB tone could help the euro continue to gather strength against the dollar and vice versa.
GBP/USD advanced toward 1.3600 but lost its traction. The pair was last seen posting small daily losses around 1.3550.
USD/JPY is moving sideways in a narrow band around mid-114.00s in the early European session. The benchmark 10-year US Treasury bond yield continues to fluctuate between 1.8% and 1.75%, making it difficult for the pair to make a decisive move in either direction.
Gold extended its rebound to $1,811 on Wednesday but started to retreat toward $1,800 early Thursday.
After rising toward the key $40,000 mark on Thursday, Bitcoin reversed its direction and lost more than 4% on a daily basis. BTC was last seen trading at around $37,000. Ethereum snapped a two-day winning streak on Wednesday and continues to edge lower toward $2,600.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.