New Zealand Employment Change came in at -0.1%, above forecasts (-0.2%) in 4Q
New Zealand Unemployment Rate in line with forecasts (5.1%) in 4Q
New Zealand Labour Cost Index (YoY) below expectations (3%) in 4Q: Actual (2.9%)
New Zealand Participation Rate came in at 71%, below expectations (71.1%) in 4Q
New Zealand Labour Cost Index (QoQ) meets forecasts (0.6%) in 4Q
United States API Weekly Crude Oil Stock came in at 5.025M, above forecasts (3.17M) in January 31
The NZD/USD pair continued its upward trajectory on Tuesday, rising 0.39% to 0.5650 and breaking above its 20-day Simple Moving Average (SMA).
Gold reached a record high of $2,845 late Tuesday during the North American session as the US Dollar tumbled, weighed down by falling US Treasury bond yields.
South Korea FX Reserves dipped from previous 415.6B to 411B in January
On Tuesday, the AUD/USD rose to 0.6255 as the pair extended Monday’s comeback.
The US Dollar shed further ground on Tuesday as market participants continued to evaluate the US tariffs narrative and the potential retaliatory measures by China.
Federal Reserve (Fed) Bank of San Francisco President Mary Daly noted on Tuesday that the Fed is firmly planted in wait-and-see mode, specifically noting the chilling effect that economic uncertainty has on policymaking.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, loses momentum on Tuesday after struggling to revisit the 110.00 level and declined below 108.00.
The Mexican Peso (MXN) registered losses against the US Dollar (USD) on Tuesday, but still it remains up in the week after United States (US) President Donald Trump delayed tariffs on Mexico, following discussions held with Mexican President Claudia Sheinbaum.
The Canadian Dollar (CAD) surged on Tuesday after market sentiment recovered from a bout of tariff fears, sending the Canadian Dollar just high enough to crash back into familiar consolidation territory after a brief test of two-decade lows.
The Dow Jones Industrial Average (DJIA) is testing the 44,450 region on Tuesday, with equities slowing their recent pace of volatility as United States (US) President Donald Trump walks back nearly all of his recent trade war blustering and kicks his self-imposed tariff can down the road for a third time.
The EUR/USD pair extended its upward movement on Tuesday, advancing to 1.0335 and showing renewed buying interest.
The Pound Sterling (GBP) post gains versus the US Dollar (USD) for the second straight day after US President Donald Trump tariff threats on Mexico and Canada were delayed, due to negotiations beginning between the parties, aimed to improve fighting against fentanyl traffic and illegal migration.
United States RealClearMarkets/TIPP Economic Optimism (MoM) below expectations (53) in February: Actual (52)
New Zealand GDT Price Index climbed from previous 1.4% to 3.7%
United States JOLTS Job Openings below expectations (8M) in December: Actual (7.6M)
United States Factory Orders (MoM) registered at -0.9%, below expectations (-0.7%) in December
Global Macro: US imposes 10% China tariffs. Beijing retaliates immediately, in a targeted, measured way. 10% US tariffs not a game changer, but more could come, ABN AMRO Senior Economist Arjen van Dijkhuizen notes.
The USD/JPY pair climbs above 155.00 in Tuesday’s North American session.
GBP has unwound some of the gains it made against the EUR yesterday indicating that the market is not convinced that the pound is a robust hedge against the likelihood of a step up in trade tensions between the EU and the US, Rabobank’s FX analyst Jane Foley notes.
United States Redbook Index (YoY) rose from previous 4.9% to 5.7% in January 31
The AUD/USD pair rebounds sharply above the round-level figure of 0.6200 in Tuesday’s North American session.
The Pound Sterling (GBP) is trading down a little on the session after a two-cent rebound from yesterday’s intraday low and stretch gains against the EUR to retest the mid-0.82 zone on the cross, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Eurozone officials are bracing for Trump’s tariff focus to turn to the EU shortly, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
USD/CAD peaked just under 1.48 yesterday and traded back to a little under 1.44 just before the close in one of the wildest days of spot movement since the GFC, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
That was exhausting. Yesterday brought a mix of news on tariffs that likely reflects the sort of swings in sentiment we will have to expect as President Trump wields the tariff hammer on the US’ main trading partners, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is having a tough Tuesday, hitting 109.00 before falling back to the lower 108.37 level.
The USD/MXN pair bounces back to near $20.50 in Tuesday’s European session after nosediving from Monday’s high of 21.29.
The USD/CAD pair trades with caution around 1.4430 in Tuesday’s European session.
Outlook is mixed; USD is likely to trade between 7.2950 and 7.3400. In the longer run, a breach of 7.2950 would mean that USD is likely to trade in a range instead of advancing further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
LME Copper has recently defended the ascending trend line drawn since 2022 (now at 8860), BBH analysts report.
US Dollar (USD) could continue to trade in an erratic manner, probably in a range of 154.50/156.00. In the longer run, for the time being, USD is likely to trade in a 153.70/156.70 range, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD/CNH has struggled to overcome crucial graphical hurdle of 7.37 representing highs of 2022/2023, BBH FX analysts report.
Gold rose to a new all-time high after US President Donald Trump imposed tariffs on Canada, Mexico and China, driving investors to safe havens, ING’s commodity analysts Warren Patterson and Ewa Manthey notes.
The pound emerged as a safe haven among pro-cyclical currencies yesterday, and seems to be retaining some solid footing after an American trade war was averted, ING’s FX analysts Francesco Pesole notes.
Outlook is unclear; New Zealand (NZD) could trade in a range between 0.5570 and 0.5670. In the longer run, current price movements are likely part of a 0.5510/0.5705 range trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
To sum up yesterday’s events, the US struck a deal with Mexico first and Canada and all parties agreed to delay tariffs by at least a month.
EUR/USD bounces back from the intraday low of 1.0270 and rebounds to near 1.0350 in Tuesday’s European session.
Spain 12-Month Letras Auction down to 2.221% from previous 2.367%
Spain 6-Month Letras Auction declined to 2.355% from previous 2.535%
Gold’s price (XAU/USD) consolidates its recent move to new all-time highs and looks for direction on Tuesday after China retaliated against US tariffs issued over the weekend.
Silver prices (XAG/USD) rose on Tuesday, according to FXStreet data.
The GBP/JPY cross reaches back to near 193.00 during the European session on Tuesday after recovering its daily losses.
Silver (XAG/USD) attracts buyers for the second straight day on Tuesday and sticks to its positive bias, above mid-$31.00s through the first half of the European session.
AUD could rise, but any advance is likely part of a higher 0.6155/0.6265 range. In the longer run, downward momentum has largely faded; AUD is expected to trade in a range between 0.6080 and 0.6310, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The Job Openings and Labor Turnover Survey (JOLTS) will be released on Tuesday by the United States (US) Bureau of Labor Statistics (BLS).
European natural gas prices remain well supported with TTF settling a little more than 1% up on the day at EUR53.79/MWh, ING’s commodity analysts Warren Patterson and Ewa Manthey notes.
Rapid rise has scope to extend, but any advance is unlikely to break clearly above 1.2475. In the longer run, for the time being, GBP is expected to trade in a range of 1.2245/1.2530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
West Texas Intermediate (WTI) crude Oil price continues to decline for the second consecutive day, trading near $71.50 per barrel during European hours on Tuesday.
The oil market gave back a lot of its gains yesterday after Mexico and Canada came to a deal with the US, which saw a delay in the implementation of tariffs. Both Mexico and Canada agreed to put more resources on their border to combat the flow of fentanyl to the US.
Euro (EUR) could continue to trade in a choppy manner, probably between 1.0255 and 1.0370. In the longer run, risk is for further EUR weakness; it remains to be seen if it can break and remain below 1.0100, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Amid the US-Canada-Mexico tariff saga – which was the main driver of EUR/USD yesterday – eurozone flash CPI estimates for January came in slightly hotter than expected.
The Pound Sterling (GBP) declines to near 1.2400 against the US Dollar (USD) in Tuesday’s European session.
NZD/USD hovers around 0.5610 during early European trading on Tuesday, facing volatility as risk-off sentiment rises due to escalating US-China trade tensions.
Spain Unemployment Change below expectations (45.4K) in January: Actual (38.725K)
Spain Unemployment Change below expectations (45.4K) in January: Actual (38.7K)
Brazil Fipe's IPC Inflation dipped from previous 0.34% to 0.24% in January
France Budget Balance up to €-156.3B in December from previous €-172.49B
The EUR/JPY cross edges higher to near 159.95 during the early European session on Tuesday.
Here is what you need to know on Tuesday, February 4: Following Monday's wild fluctuations that were triggered by headlines surrounding US President Donald Trump's tariff policy, markets seem to be settling down early Tuesday.
The EUR/GBP cross turns lower for the third successive day following an Asian session uptick and currently trades around the 0.8300 mark, just above a near one-month low touched the previous day.
The USD/CHF pair trades with mild gains around 0.9125 during the early European session on Tuesday.
China’s Commerce Ministry announced on Tuesday that It would impose 15% tariffs on US coal and liquified natural gas (LNG) imports.
EUR/USD extends its losing streak after surrendering daily gains, trading around 1.0280 during the Asian session on Tuesday.
The USD/CAD pair attracts some dip-buying near the 1.4385 region during the Asian session on Tuesday and for now, seems to have stalled the previous day's sharp retracement slide from its highest level since April 2003.
The AUD/JPY cross attracts some buyers to near 96.20 during the early European session on Tuesday.
Gold price (XAU/USD) trades with a positive bias around the $2,820 region during the Asian session on Tuesday and remains close to the all-time peak touched the previous day.
Gold prices rose in India on Tuesday, according to data compiled by FXStreet.
The Indian Rupee (INR) softens on Tuesday, pressured by the stronger US Dollar (USD).
FX option expiries for Feb 4 NY cut at 10:00 Eastern Time via DTCC can be found below.
GBP/USD continues to gain ground for the second successive session, trading around 1.2430 during the Asian hours on Tuesday.
Bank of Japan (BoJ) Governor Kazuo Ueda told the Japanese parliament on Tuesday that the “BoJ is aiming to achieve 2% inflation, as measured by overall CPI, on a sustainable basis.” Additional quotes Trend inflation refers to price moves excluding one-off factors.
Silver price (XAG/USD) continues its upward momentum, reaching near two-month highs and trading around $31.60 per troy ounce during Asian trading hours on Tuesday.
West Texas Intermediate (WTI) US Crude Oil prices extend the previous day's retracement slide from a one-week top and attract sellers for the second successive day on Tuesday.
The Australian Dollar (AUD) rebounds on Tuesday, ending its six-day losing streak as the AUD/USD pair rises amid a weakening US Dollar (USD).
The Japanese Yen (JPY) drifts lower during the Asian session on Tuesday as US President Donald Trump's decision to delay plans to impose trade tariffs on Canada and Mexico dents demand for traditional safe-haven assets.
Ireland Purchasing Manager Index Manufacturing climbed from previous 49.1 to 51.3 in January
The White House said in a statement late Monday that US President Donald Trump signed an executive order to begin developing a US government-owned investment fund, per Reuters.
The NZD/USD pair recovers some lost ground to near 0.5630 during the early Asian session on Tuesday.
Japan Monetary Base (YoY) declined to -2.5% in January from previous -1%
EUR/USD dropped sharply following fresh tariff threats from US President Donald Trump, impacting the markets.
GBP/USD sewered after a batch of fresh tariff threats from US President Donald Trump hit the markets, but plunges across global risk markets clawed back to recover ground after looming US tariffs on Canada and Mexico gave way to 30-day concessions from the Trump administration.
The USD/CAD pair tumbles to near 1.4410 during the late American session on Monday.
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted during a radio interview during the late Monday session that economic uncertainty is exactly the type of thing that would trigger a pause in future rate cuts.
Canadian Prime Minister Justin Trudeau announced late Monday that a tit-for-tat spat of trade tariffs between the US and Canada would be suspended for 30 days as the two countries agree to meet at the negotiating table.
United States Total Vehicle Sales down to 15.6M in January from previous 16.8M
The NZD/JPY pair saw heightened volatility on Monday, plunging to a fresh multi-month low of 85.70 before staging a partial recovery to close at 86.55.