Forex Today: More Fedspeak and the ADP report take centre stage

Pablo Piovano FXStreet

The US Dollar shed further ground on Tuesday as market participants continued to evaluate the US tariffs narrative and the potential retaliatory measures by China.

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

The US Dollar Index (DXY) failed to regain upside impulse, keeping the trade well above the 108.00 barrier amid tariffs concerns and higher US yields. The ADP Employment Change report will gather all the looks seconded by MBA’s Mortgage Applications, the final S&P Global Services PMI, the ISM Services PMI, and the EIA’s weekly report on US crude oil stockpiles. In addition, the Fed’s Jefferson, Barkin, Goolsbee, and Bowman are all due to speak.

EUR/USD picked up a strong pace and reversed six days of losses, advancing to the vicinity of the key 1.0400 mark on Tuesday. The final HCOB Services PMIs in Germany and the euro area are due, seconded by Producer Prices in the bloc and the speech by the ECB’s Lane.

GBP/USD added to Monday's advance and revisited the boundaries of the key 1.2500 barrier on the back of the persistent offered bias in the Greenback. All the attention will be on the publication of the final S&P Global Services PMI.

USD/JPY kept the erratic performance well in place, reversing Monday’s retracement and revisiting the 155.50 zone. The final Jibun Bank Services PMI and Average Cash Earnings will be released.

AUD/USD rebounded from Monday’s multi-year lows. Although it failed to extend the bounce further north of the 0.6260 region, it printed marked gains for the day. The Ai Group Manufacturing Index is next on tap in Oz.

WTI prices managed to stage a marked comeback after hitting new lows near the $70.00 mark per barrel, eventually ending the day with humble gains.

Gold prices rose to an all-time high around $2,840 per ounce troy amid the Dollar’s pullback and steady jitters surrounding Trump’s tariffs plan. Silver prices gathered extra steam and surpassed the $32.00 level per ounce for the first time since mid-December.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.