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 struggles to hold above 1.1800 ahead of US data

EUR/USD finds it difficult to gather recovery momentum and retreats below 1.1800 in the second half of the day on Thursday. The US Dollar (USD) stays resilient against its peers after the hawkish surprise in FOMC Minutes, weighing on the pair ahead of the next batch of US data.

GBP/USD recovers above 1.3500 amid better mood

GBP/USD finds fresh demand and rises back above 1.3500 in the European session on Thursday. Improving risk sentiment and renewed US Dollar weakness are helping the pair recover ground ahead of mid-tier US data releases and Fedspeak.

Gold retreats from daily highs, trades below $5,000

Gold finds it difficult to stabilize above the $5,000 psychological mark on Thursday and trades slightly below this level in the early American session. Escalating geopolitical tensions in the Middle East help XAU/USD hold its ground, while the broad-based USD strength caps the pair's upside.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.