Things to watch out for on Tuesday, February 7:
The US currency extended its rally on Friday to record highs in February against most of its major rivals, buoyed by poor market sentiment.
tensions Policies between Washington and Beijing weighed on market sentiment, further fueling demand for the US currency. An apparent surveillance balloon from China took to the skies over the US last week, the saga ending after President Joe Biden’s administration took it down on Saturday. As a consequence, diplomatic relations between the two countries were temporarily interrupted and the United States postponed the next trip to China by Secretary of State Blinken.
The EUR/USD pair fell as low as 1.0708, rebounding towards the current 1.0720 price zone, but ending a third consecutive day in the red. Bad data from the EU further weighed down the euro. Germany released December Factory Orders, which fell 10.1% yoy, much worse than expected. On the other hand, Eurozone Retail Sales fell 2.7% month-on-month in January and 2.8% year-over-year.
The GBP/USD pair is trading around 1.2020. Earlier in the day, the Bank of England’s chief economist Huw Pillstated that UK policymakers are willing to do more to bring inflation back to target as the chances of inflation embedment in the UK are higher than in Europe.
The AUD/USD pair is trading around 0.6880 ahead of the Reserve Bank of Australiamonetary policy decision of the Reserve Bank of Australia. The Canadian dollar fell sharply, and the USD/CAD pair is now around 1.3440.
The USD/JPY pair gapped higher at the weekly open. The pair is currently trading around 132.50, with eyes set on a possible pullback to 131.20.
US Treasury yields rose. The 10-year Treasury yield is currently yielding 3.63%, up 10 basis points, while the 2-year note is offering 4.43%, up 13 basis points. Stock markets, meanwhile, are trading lower, with US indices losing some ground after their European counterparts traded lower.
Spot gold bottomed at $1,860.20 a troy ounce, a new 1-month low, bouncing modestly to end the day at $1,866. Crude Oil prices fell intraday, but managed to recover ground. WTI posted a modest intraday advance to settle at $74.30.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
