Market Drivers- US Session: Attention shifts to Japan’s GDP, US jobs data

Market attention is shifting towards key economic data releases, with Japanese GDP and US jobs figures taking center stage. The US Dollar (USD) showed signs of recovery on Monday, partially reversing recent losses fueled by tariff concerns and economic uncertainty. The USD Index (DXY) regained the 104.00 level, although it remains near multi-month lows due to declining US Treasury yields.

Tuesday’s economic calendar is packed with significant releases, including the NFIB Business Optimism Index, JOLTs Job Openings, and API Weekly Crude Oil Inventory Report in the US, alongside Japan’s final Q4 GDP Growth Rate and Household Spending figures. In Europe, the ECOFIN Meeting and speeches by ECB officials will be closely watched, while the UK’s BRC Retail Sales Monitor and Australia’s consumer and business confidence data will provide further market insights.

Currency markets witnessed notable movements, with EUR/USD struggling below 1.0900 and GBP/USD retreating from resistance around 1.2950. The Japanese Yen strengthened, pushing USD/JPY below 147.00, while AUD/USD continued its decline. Commodity markets also experienced downward pressure, with WTI crude oil falling below $67.00 and gold and silver prices retracing to multi-day lows.