What you need to know on Thursday, February 4:
Most of the major pairs are consolidating this Wednesday, with the dollar retaining most of its weekly gains. The dollar fell modestly, still supported by hopes for a new US stimulus package. Democratic senators moved forward with a coronavirus aid package, with the goal of passing legislation without Republican support. Negotiations continue on the details of who will receive the stimulus checks and for how much.
EUR / USD remains depressed near the 1.2000 threshold while GBP / USD consolidates around 1.3650. The USD / JPY pair remains in gains around 105.00.
Commodity-linked currencies recovered some dovish ground against the dollar, despite weaker oil and gold prices. The shiny metal closed at $ 1,832 a troy ounce, while the WTI ended the day at $ 55.60 a barrel.
Former ECB President Mario Draghi has been summoned by Italian President Sergio Mattarella to try to form a new coalition government in the country after Giuseppe Conte resigned as prime minister last week.
Attention shifts to the Bank of England’s monetary policy decision as US employment data, ahead of Friday’s non-farm payroll report.