Forex Today: Dollar retains the weak stance ahead of BOE, ECB

Valeria Bednarik FXStreet

What you need to know on Thursday, February 3:

The American dollar kept falling on Wednesday to reach fresh weekly lows against its high-yielding rivals. The EUR/USD pair reached 1.1329 as the EU annual Consumer Price Index jumped to 5.1% in January, largely surpassing the 4.4% expected and above the 5% previous. The reading came one day ahead of the European Central Bank monetary policy announcement, putting pressure on the central bank to respond with a tighter monetary policy.

Government bond yields held near the lower end of their weekly range.

GBP/USD heads into the Asian opening, trading near a daily high of 1.3587, as Wall Street recovered from an early knee-jerk and closed in the green. Stocks eased after the release of the US ADP survey, which showed that the private sector lost 301K positions in January, much worse than anticipated and fueling concerns about the economic recovery in the country.

AUD/USD trades in the 0.7140 region, while USD/CAD is down to 1.2660, while safe-haven currencies also advanced against the dollar.

Gold posted a modest intraday advance and trades at $1,808 a troy ounce, while crude oil prices remained steady around Tuesday’s close. WTI settled at $88.10 a barrel.

US indexes managed to post gains after a soft start to the day. The DJIA added over 200 points and was the best performer.

On Thursday, the European Central Bank and the Bank of England will announce their decisions on monetary policy.

Crypto.com price slips despite offer to protect Australian users against hacks

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.

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold yearns for acceptance above the $5,000 mark

Gold preserves 2% advance seen on Wednesday as buyers gather pace early Thursday. The US Dollar holds January Fed Minutes-led gains ahead of more US macro data. Gold needs a sustained break above the key $5,000 barrier; daily RSI stays bullish.

Top Crypto Gainers: World Liberty Financial, Sky, and Cosmos confront major resistance

World Liberty Financial, Sky, and Cosmos rank among the top gainers over the last 24 hours but face critical overhead resistance levels. WLFI gained momentum at the World Liberty Forum, an invite-only conference held at Mar-a-Lago by US President Donald Trump’s family, while SKY and ATOM reversed off a crucial support level.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.