Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Stronger US fundamentals as well as Powell’s hawkish tone over the weekend were more than enough to propel the US dollar to new yearly highs and place the risk-associated universe under increased pressure at the start of a new trading week.
The US dollar surged to fresh yearly highs well above the 104.00 level in response to investors’ evaluations of the latest NFP data and Chief Powell’s hawkish tilt, all while US rates rose sharply.
The stronger US dollar kept prices of both Gold and Silver under pressure, sparking a marked decline.
Economic Data
On February 6, the US docket includes the TIPP Economic Optimism Index and the speech by Cleveland Fed L. Mester.
The API and EIA will release their reports on US crude oil stocks on Tuesday and Wednesday, respectively.
Key Developments
The EUR/USD pair continued on the defensive, slipping back below 1.0730 to set new two-month lows against the backdrop of the US Dollar’s strong upward trend and the lack of surprises in the final Services PMI throughout the eurozone. On Tuesday, the announcement of Retail Sales in Europe as a whole will be in the spotlight.
The GBP/USD pair fell to multi-week lows far below 1.2600, following a generalized strong tone in the US dollar and a final UK Services PMI that remained below the 50 level. The BRC Retail Sales Monitor and Construction PMI are due on Tuesday.
The combination of the sharp advance in the US dollar and higher yields lent legs to USD/JPY and bolstered a move to a new 2024 top in the 148.80/85 band on Monday. Next on tap in Japan will be the December Household Spending figures due on February 6.
The continuation of the leg lower saw AUD/USD break below the 0.6500 support and print fresh three-month lows at the beginning of the week. All the attention will be on the RBA meeting on Tuesday, when the central bank is seen maintaining its cash rate intact at 4.35%.
USD/CAD surpassed the key 200-day SMA and climbed to multi-day highs above 1.3500, adding to Friday’s strong advance. On Tuesday, Building Permits and the Ivey PMI are due ahead of the speech by BoC’s T. Macklem.
Also Read:
Oil climbs as traders digest geopolitical developments
EUR/USD extends recent decline after German data
US stocks abandon recent positive sentiment after Powell’s interview
Canadian Dollar hits eight-week low after US PMI data
Top Treasury officials visiting Beijing seeking to ease Sino-US economic tensions
Rate cut outlook in light of recent remarks by Powell, Kashkari
EUR/GBP surges following Eurozone PMIs
Caterpillar stock on track for record high on higher than expected earnings
