Market Drivers; US Session

Market Caution Expected Ahead of US Jobs Report and Amid Trade Uncertainty

The US dollar recovered some ground, partially reversing its weekly decline, as markets await the crucial US employment report and remain uncertain about trade policies.

The US Dollar Index (DXY) rebounded slightly, supported by a modest rise in US yields and a slight downturn in risk appetite. The January Nonfarm Payrolls report is the key event of the week, followed by the preliminary Michigan Consumer Sentiment Index and Wholesale Inventories data.

EUR/USD’s upward trend slowed, pulling back to the mid-1.0300s as the US dollar strengthened. Germany will release its Balance of Trade figures, and the ECB’s De Guindos will deliver a speech.
GBP/USD fell to a three-day low, around 1.2360, following the Bank of England’s rate cut and increased USD buying. The UK will see the release of BBA Mortgage Rates, the Halifax House Price Index, and a speech by the Bank of England’s Pill.

USD/JPY continued its decline, retesting two-month lows near 151.80 due to strong yen buying. Japan will publish Household Spending data and the preliminary Coincident Index and Leading Economic Index.
AUD/USD’s weekly recovery fell short of the 0.6300 level, triggering a correction on Thursday as the US dollar broadly gained.
WTI crude oil prices weakened, approaching the key support area around $70.00 per barrel, a fresh five-week low.

Gold prices paused their five-day rally on Thursday, encountering selling pressure after reaching an all-time high above $2,880 per ounce. Silver prices also declined significantly, falling below $32.00 per ounce.