This is what you need to know to trade today Wednesday February 2:
The US dollar continued to weaken against its rivals on Tuesday and the DXY index erased a large part of the previous week’s gains. Risk-positive sentiment in the market made it difficult for the dollar to find demand and the benchmark 10-year US Treasury yield returned below 1.80%, further weighing on the currency. Early on Wednesday, the DXY seems to have entered a consolidation phase above 96.00. Markets await euro zone CPI consumer price index data for January and ADP’s US private sector jobs report, ahead of expected central bank meetings on Thursday.
After rising almost 2% on Monday, the index SP500 opened modestly lower on Tuesday, but ended up closing the day in positive territory. Early Wednesday, US stock index futures are up between 0.1% and 0.35%.
The EUR/USD remains relatively calm below 1.1300 at the start of the European session. The CPI in the euro zone is expected to decline to 4.4% annually from 5% in December. Mild inflation could cause the common currency to lose interest.
The GBP/USD it is trading in a tight range above 1.3500. The market expectation is that the Bank of England will raise its policy rate by 25 basis points on Thursday.
The USD/JPY fell for the third day in a row on Tuesday pressured by falling yields on US Treasury bonds. The pair was last seen moving sideways around 115.00.
The NZD/USD lost its upside momentum after the mixed jobs report, trading flat on the day near 0.6630. The unemployment rate in New Zealand decreased to 3.2% in the fourth quarter from 3.4%. On a negative note, the change in employment came in at +0.1% in the fourth quarter, below the market expectation of 0.3%.
he orriver it rose to $1,810 on Tuesday, but gave back most of its daily gains before closing near $1,800. The yellow metal is moving into negative territory early on Wednesday.
The Bitcoin it extended its bounce on Tuesday, but appears to have lost its upside momentum before testing the $40,000 level. The ethereum it has closed the last two days in the positive and has gained almost 7% over that period before entering a consolidation phase around $2,700.
Source: Fx Street
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