Forex Today: Dollar Holds on to Last Week’s Recovery Gains

This is what you need to know to trade today monday february 6:

Markets have started the new week calmly and the US dollar is managing to hold its ground against its main rivals after posting impressive gains following Friday’s impressive January jobs report. He US dollar index DXY holds at multi-week highs near 103.00 and the 10-year US Treasury yield remains in positive territory at around 3.55%. US stock index futures are down between 0.3% and 0.6% in European morning, reflecting a cautious tone in the markets. The Sentix Investor Confidence Index for February and Retail Sales for January will be the highlights of the European economic agenda on Monday. In the United States, no major data will be released and market participants will pay close attention to the words of the Federal Reserve.

Data released by the US Bureau of Labor Statistics revealed on Friday that US non-farm payrolls (NFP) increased by 571,000 in January, beating market expectations of 185,000 by a wide margin. Although annual wage inflation, as measured by average hourly earnings, fell to 4.4% in January, December’s reading of 4.6% was revised up to 4.9%. The dollar rose on the back of impressive NFP numbers and the DXY index snapped a three-week losing streak, gaining 1% on the week.

He EUR/USD it lost more than 100 pips on Friday and closed below 1.0800. The pair struggles to bounce in the early hours of the European session on Monday. The data from Germany have revealed that factory orders increased by 3.2% in December. Despite the fact that this figure exceeded market expectations, which expected a 2% increase, it did not help the Euro to find demand. Eurozone retail sales are expected to decline by 2.5% per month in january.

He GBP/USD fell sharply in the second half of last week and has touched its lowest level in a month at 1.2033 during the Asian session on Monday. The pair has managed to recover and is now moving slightly higher above 1.2050.

He USD/JPY The week has started with a large bullish gap and has reached its highest level in almost a month above 132.50 before pulling back below 132.00 during the European morning. Earlier in the day, the Nikkei reported that the Japanese government had approached the deputy governor of the Bank of Japan, Masayoshi Amamiya, as a possible successor to the governor of the central bank, Haruhiko Kuroda. I have not heard anything about Amamiya’s nomination as BoJ governor,” Japan’s Finance Minister Shunichi Suzuki said.

Pressured by rising US Treasury yields, the price of gold it lost more than 4% in the second half of the previous week. XAU/USD tries to recover early on Monday and is now trading above $1,875, up more than 0.5% daily.

He Bitcoin extended its downward correction over the weekend and has continued to push lower into early Monday. At the time of writing, BTC/USD is trading slightly lower around $22,800. He ethereum It snapped a five-day winning streak on Sunday and lost more than 2% on the day. ETH/USD is relatively quiet into early Monday trading in a tight range above $1,600.