This is what you need to know to trade today Tuesday February 7:
The Dollar Index managed to consolidate last week’s gains and closed Monday in positive territory amid risk aversion. As of early Tuesday, the US dollar is relatively quiet as the Australian dollar outperforms its rivals following the Reserve Bank of Australia’s (RBA) monetary policy announcements. In the absence of high-impact data releases, investors will pay close attention to speeches by members of central banksincluding the Governor of the Bank of Canada, Tiff Macklenand the Chairman of the FOMC, Jerome Powell.
During the Asian session on Tuesday, the RBA announced that it had raised its interest rate by 25 basis points, up 3.35%, as expected. In its monetary policy statement, the entity indicated that the council expects further increases in interest rates. Driven by the hawkish tone of the RBA, the pair AUD/USD It rose strongly and is up 0.7% on the day, around 0.6930.
He EUR/USD it extended its slide and approached 1.0710 before recovering slightly. As of this writing, the pair is trading flat near 1.0730. The Data from Germany revealed that industrial production contracted 3.1% m/m in December, compared to the market forecast of a decrease of 0.6%. Isabel Schnabel, member of the Governing Council of the European Central Bank (ECB), will deliver a speech later in the day.
Despite the overall strength of the US dollar, the GBP/USD It was relatively quiet as encouraging Brexit-related headlines helped sterling hold its ground. The Guardian reported late on Monday that EU and UK negotiators have made a breakthrough in the dispute over the Northern Ireland Protocol. Bank of England (BoE) Chief Economist Huw Pill and BoE Deputy Governor Jon Cunliffe will speak on Tuesday.
The BoC Market Participants Survey for the fourth quarter of 2022 showed on Monday that the median response for the late-2023 policy rate stood at 4%, forecasting a 50 basis point cut. . He USD/CAD It closed in positive territory on Monday, but seems to be struggling to preserve its bullish momentum early on Tuesday. At press time, the pair is trading slightly lower at 1.3425.
After the bullish start to the week, the USD/JPY is having a hard time gaining traction early Tuesday and is trading in negative territory slightly above 132.00. Data from Japan revealed that the Coincident Index dipped to 98.9 in the December flash estimate and the Leading Indicators Index dipped slightly to 97.2 from 97.4 in November.
On Monday, the price of gold it did not advance decisively in either direction, before starting to rise early on Tuesday. With the 10-year US Treasury yield dipping towards 3.6% after Monday’s rise, XAU/USD is trading in positive territory above $1,870.
Bitcoin it closed in negative territory for the fifth day in a row on Monday before entering a consolidation phase near $23,000 early on Tuesday. ethereum it lost nearly 1% on Monday but managed to gain traction early on Tuesday. At time of writing, the ETH/USD pair is up 1.2% on the day at $1,635.
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.
