The NZD/USD pair extended its downward trajectory on Monday, falling sharply to 0.5515, its lowest point in over a year, before managing a slight rebound to settle at 0.5595.
Silver prices advance late in the North American session on Monday, up 0.71%, as trade tensions between the US, Canada, China, and the Eurozone (EU) rise.
The Australian Dollar (AUD) extends its losing streak against the US Dollar (USD) on Monday as the pair tests critical support near 0.6250.
The USD/CHF trims some gains after reaching a three-week high of 0.9195.
The US Dollar kicked off the week on a strong note as market participants assessed the implementation of US tariffs over the weekend, while investors should remain focused on the US labour market data throughout this week as well as comments from Fed’s rate setters.
GBP/USD roiled on Monday, tumbling 1.5% during the overnight session before recovering back to flat for the day at the 1.2400 handle.
Gold price hit a record high on Monday after the US initially scheduled tariffs on Canada, Mexico and China, sparking flows toward the non-yielding metal's safe-haven appeal.
The Dow Jones Industrial Average (DJIA) is caught in a lurch on Monday, falling below the 44,000 handle in the overnight session before recovering lost ground after headlines hit that US tariffs on Mexico may be delayed for up to a month as the two countries work out their differences.
United States (US) President Donald Trump hit the newswires with a wide swath of off-hand statements on Monday, ranging from the war in Ukraine, where President Trump expects 'rare earth metals' in exchange for obtaining a ceasefire with Russia.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, retreats slightly after failing to test the 110.00 level but remains well-supported above 108.00.
Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic noted on Monday that although the US labor market remains surprisingly resilient, tariff threats throw a wrench in outlook expectations.
The Mexican Peso (MXN) recovered some ground after weakening to an almost three-year low of 21.28 against the US Dollar (USD) as United States (US) President Donald Trump and Mexican President Claudia Sheinbaum agreed to pause tariffs for one month as they compromise to cooperate in security and trade.
The Canadian Dollar (CAD) plummeted to its lowest bids against the US Dollar (USD) in 21 years at the outset of the trading week after the US and Canada went tit-for-tat on trade tariffs that will pulverize key aspects of both economies.
The EUR/USD pair continued its downward trajectory on Monday, slipping to a low around 1.0200 before staging a brief rebound to 1.0300.
The USD/JPY retreated from daily highs of 155.86 hit after US President Donald Trump advanced on its protectionist policies, enacting tariffs in Canada, Mexico, and China.
United States ISM Manufacturing PMI registered at 50.9 above expectations (49.8) in January
United States Construction Spending (MoM) above forecasts (0.1%) in December: Actual (0.5%)
United States ISM Manufacturing Prices Paid came in at 54.9, above expectations (52.6) in January
United States ISM Manufacturing Employment Index up to 50.3 in January from previous 45.3
United States ISM Manufacturing New Orders Index climbed from previous 52.5 to 55.1 in January
Trump fired the first shot in a multifront trade war on Saturday when tariffs on
The Dollar Index (DXY) has rebounded after probing the upper part of previous multi-month range at 107, BBH FX analysts report.
United States S&P Global Manufacturing PMI came in at 51.2, above forecasts (50.1) in January
The US Dollar (USD) surrenders some of its intraday gains in Monday’s North American session, with the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, dropping to near 109.20 after posting a fresh two-week high near 109.90.
Canada S&P Global Manufacturing PMI declined to 51.6 in January from previous 52.2
China’s official manufacturing PMI dropped to 49.1 in January from 50.1 in February, entering contractionary territory again since October. The official survey suggests a broad-based m/m decline in demand and production activity.
US President Donald Trump carried out his threat over the weekend and imposed tariffs of 25% on Canada and Mexico and 10% on China, starting on Tuesday.
The Pound Sterling (GBP) is weaker on the session but it has held up a little better than its G10 peers, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.
US tariffs on imports from Canada, Mexico and China are set to come into effect on 4 February and failing to come to a deal would mean tariffs of 25% on Canadian and Mexican goods and 10% on imports from China. For Canadian energy, the Trump administration decided to impose a tariff of only 10%.
The EUR slumped to 1.0150 in early Asian trade but has since stabilized in the low/mid-1.02 range. President Trump made it clear that tariffs are coming for the EU as well in the not-too-distant future, Scotiabank's Chief FX Strategist Shaun Osborne notes.
US Dollar (USD) could rise further; overbought conditions suggest 7.4000 is unlikely to come into view. In the longer run, strong opening gap in USD suggests further advance; expect 7.4000 to provide resistance, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Gold price (XAU/USD) recovers its intraday losses and turns positive in Monday’s North American session.
The Canadian Dollar (CAD) has weakened in response to President Trump applying 25% tariffs on Canadian exports to the US. A 10% tariff will apply to Canadian energy exports. In response, Canada has announced limited counter-tariff retaliation of 25% covering USD107bn of US exports to Canada.
Upward momentum is beginning to build; US Dollar (USD) is likely to rise above 156.00 but is unlikely to reach 156.80.
The first real shots of a global trade war were fired at the weekend, with President Trump levying 25% tariffs on Canada and Mexico, an additional 10% on Chinese goods and telling Europe that tariffs are 'absolutely' coming.
Brazil S&P Global Manufacturing PMI increased to 50.7 in January from previous 50.4
Singapore Purchasing Managers Index fell from previous 51.1 to 50.9 in January
South Africa Total New Vehicle Sales increased to 46.4 in January from previous 41.27
The AUD/USD pair recovers slightly after plummeting to a fresh four-year low near 0.6100 but is still more than 1.10% down in Monday’s European session.
New Zealand Dollar (NZD) could drop further and test 0.5510 before stabilization can be expected. In the longer run, risks for NZD are on the downside; it must break clearly below 0.5510 before a move to 0.5450 is likely, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The balance of growth and inflationary effects from US tariffs is of huge importance for FX, as this will determine the Bank of Canada’s policy reaction and potentially widen the USD-CAD rate gap even further, ING’s FX analysts Francesco Pesole and James Knightley note.
Chance for Australian Dollar (AUD) to drop further; given the deeply oversold conditions, a sustained decline below 0.6080 appears unlikely today.
Saturday's announcement that Washington would go into full tariff mode against Mexico and Canada starting tomorrow has come as a surprise to FX markets.
The NZD/USD pair pares some intraday losses after nosediving to an over-two-year low near 0.5516 in Monday’s European session.
German Chancellor Olaf Scholz said on Monday, the European Union (EU) can react with its own tariffs but cooperation is more important.
EUR/USD nosedives over 1% to near 1.0240 at the start of the week.
The Eurozone Harmonized Index of Consumer Prices (HICP) advanced at an annual rate of 2.5% in January after increasing 2.4% in December, the official data released by Eurostat showed Monday.
Italy Consumer Price Index (MoM) above expectations (0.4%) in January: Actual (0.6%)
Italy Consumer Price Index (YoY) climbed from previous 1.3% to 1.5% in January
Italy Consumer Price Index (EU Norm) (MoM) dipped from previous 0.1% to -0.7% in January
Italy Consumer Price Index (EU Norm) (YoY) increased to 1.7% in January from previous 1.4%
Eurozone Core Harmonized Index of Consumer Prices (MoM): -1% (January) vs previous 0.5%
Eurozone Harmonized Index of Consumer Prices (MoM) declined to -0.3% in January from previous 0.4%
Eurozone Harmonized Index of Consumer Prices (YoY) in line with forecasts (2.5%) in January
Eurozone Core Harmonized Index of Consumer Prices (YoY) came in at 2.7%, above expectations (2.6%) in January
Sterling has been one of the least badly hit G10 currencies, arguably because the UK runs a trade deficit with the US and goods exports to GDP are relatively small, ING’s FX analysts Chris Turner notes.
Sharp drop in GBP has scope to extend; the 1.2245 level is expected to provide support. In the longer run, GBP is likely to trade with a downward bias towards 1.2245, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The growing prospect of a global trade war and tariffs heading towards the EU is a clean euro negative, ING’s FX analysts Chris Turner notes.
Oversold decline has not stabilized; support levels are at 1.0175 and 1.0100. In the longer run, risk is for further Euro (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.
United Kingdom S&P Global/CIPS Manufacturing PMI above expectations (48.2) in January: Actual (48.3)
Silver prices (XAG/USD) fell on Monday, according to FXStreet data.
European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Monday that he sees another 25 basis points (bps) interest rate cut in March.
European Central Bank (ECB) policymaker Peter Kazimir said on Monday, “latest rate cut moves us closer to our destination.” Additional quotes But we are not quite there yet.
Greece S&P Global Manufacturing PMI dipped from previous 53.2 to 52.8 in January
Eurozone HCOB Manufacturing PMI came in at 46.6, above expectations (46.1) in January
Excitement is building as the Institute for Supply Management (ISM) prepares to release the January US Manufacturing Purchasing Managers’ Index (PMI) this Monday.
Germany HCOB Manufacturing PMI above expectations (44.1) in January: Actual (45)
France HCOB Manufacturing PMI below expectations (45.3) in January: Actual (45)
Italy HCOB Manufacturing PMI climbed from previous 46.2 to 46.3 in January
GBP/JPY trims its recent losses, trading around 191.50 during the European hours on Monday.
Switzerland SVME - Purchasing Managers' Index registered at 47.5, below expectations (49) in January
Austria Unemployment Rate up to 8.6% in January from previous 8.3%
Austria Unemployment climbed from previous 352.9K to 365.7K in January
EUR/GBP trades around 0.8330 during the European session on Monday after recovering some part of its daily losses.
Spain HCOB Manufacturing PMI declined to 50.9 in January from previous 53.3
The Pound Sterling (GBP) trades significantly lower to near 1.2250 against the US Dollar (USD) in Monday’s European session.
European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Monday that US President Donald Trump's tariffs will increase economic uncertainty, calling it a "very worrying development," as reported by Reuters.
Sweden Purchasing Managers Index Manufacturing (MoM) increased to 52.9 in January from previous 52.4
The USD/CAD pair gains strength for the sixth consecutive day, trading around 1.4710 during the early European hours on Monday.
Here is what you need to know on Monday, February 3: The US Dollar (USD) gathers strength on the first trading day of February as markets adopt a cautious stance in reaction to US President Donald Trump's tariff announcements.
Turkey Consumer Price Index (MoM) registered at 5.03% above expectations (4.35%) in January
Turkey Consumer Price Index (YoY) came in at 42.12%, above forecasts (41.25%) in January
The USD/CHF pair extends the rally to near 0.9165 during the early European trading hours on Monday.
Japan's Economy Minister Ryosei Akazawa said on Monday that the officials aim to reach the 2% Bank of Japan’s (BoJ) inflation goal and plan measures to mitigate the impact of increasing living costs.
Russia S&P Global Manufacturing PMI climbed from previous 50.8 to 53.1 in January
Netherlands, The Markit Manufacturing PMI fell from previous 48.6 to 48.4 in January
Australia RBA Commodity Index SDR (YoY) dipped from previous -10.7% to -11.9% in January
Netherlands, The Retail Sales (YoY) down to 0.1% in December from previous 2.7%
The AUD/JPY cross attracts heavy selling at the start of a new week and dives to its lowest level since September 2024, around the 94.70-94.65 region during the Asian session.
Silver price (XAG/USD) tumbles to near $30.90 during the early European trading hours on Monday.
The EUR/USD pair continues its downward trend, which started on January 27, trading around 1.0230 during the Asian session on Monday.
Reuters has reported, citing unnamed sources, that Beijing is preparing an opening bid to try to head off greater tariff increases and technology restrictions from the Trump administration, indicating that China is keen to begin trade discussions.
India HSBC Manufacturing PMI came in at 57.7 below forecasts (57.8) in January
Gold price (XAU/USD) attracts heavy selling at the start of a new week and moves away from a fresh all-time peak, around the $2,717 region touched on Friday.
FX option expiries for Feb 3 NY cut at 10:00 Eastern Time via DTCC can be found below.
Gold prices fell in India on Monday, according to data compiled by FXStreet.
USD/MXN hits the week by extending its gains for the third successive session, trading near 21.20 during the Asian hours on Monday.
Indonesia Core Inflation (YoY) above forecasts (2.3%) in January: Actual (2.36%)
Indonesia Inflation (MoM) registered at -0.76%, below expectations (0.32%) in January
West Texas Intermediate (WTI) Oil price edges lower to near $73.00 per barrel during the Asian session on Monday.
The Indian Rupee (INR) tumbles on Monday. Trump’s announcement of the imposition of tariffs on major trading partners including China, Canada, and Mexico exert some selling pressure on the local currency.
US Senior Republican Senator Mitch McConnell said in an American TV show '60 Minutes' late Sunday, he objects to tariffs pushed by President Donald Trump.
The Japanese Yen (JPY) drifts lower against its American counterpart for the second straight day on Monday and moves away from over a one-month high touched last week.
The Australian Dollar (AUD) extends its losing streak against the US Dollar (USD) for the sixth consecutive session on Monday.
The NZD/USD pair faces some selling pressure to near 0.5545 during the Asian trading hours on Monday.
China's Caixin Manufacturing Purchasing Managers' Index (PMI) dropped to 50.1 in January from December’s 50.5, the latest data showed on Thursday.
China Caixin Manufacturing PMI came in at 50.1, below expectations (50.5) in January
The USD/CAD pair builds on last week's breakout momentum above a short-term trading range and gains strong positive traction during the Asian session on Monday.
In a letter to Key Square Capital Management partners sent a year ago, US Treasury Secretary Scott Bessent said that “tariffs are inflationary and would strengthen the dollar—hardly a good starting point for a US industrial renaissance.” Last month, Bessent pushed for new universal tariffs on US imports to start at 2.5% and rise gradually, per the Financial Times (FT).
GBP/USD continues its decline for the fifth consecutive session, hovering around 1.2270 during Monday’s Asian trading hours.
Gold price (XAU/USD) edges lower to around $2,795 during the early Asian session on Monday.
Australia’s Retail Sales, a measure of the country’s consumer spending, declined 0.1% MoM in December, compared to an increase of 0.8% in November, the official data published by the Australian Bureau of Statistics (ABS) showed on Monday.
The EUR/USD pair attracts heavy follow-through selling on Monday and dives to the 1.0200 neighborhood, or a three-week low during the early Asian session.
Australia ANZ Job Advertisements fell from previous 0.3% to 0.2% in January
Australia Building Permits (YoY) rose from previous 3.2% to 12.2% in December
Japan Jibun Bank Manufacturing PMI registered at 48.7, below expectations (48.8) in January
South Korea S&P Global Manufacturing PMI up to 50.3 in January from previous 49
Australia Retail Sales s.a. (MoM) above expectations (-0.7%) in December: Actual (-0.1%)
Australia Building Permits (MoM) below forecasts (1%) in December: Actual (0.7%)
The Bank of Japan (BoJ) published the Summary of Opinions from its January monetary policy meeting, with the key findings noted below.
The AUD/USD pair attracts some sellers to near 0.6155 during the early Asian session on Monday.
South Korea Industrial Output (YoY) registered at 5.3% above expectations (0.7%) in December
South Korea Service Sector Output rose from previous -0.2% to 1.7% in December
South Korea Industrial Output Growth above forecasts (0.4%) in December: Actual (4.6%)
On Saturday, Canada was notified that the United States will place 25% tariffs on Canada and Mexico while China will be hit with 10% tariffs.
Australia Judo Bank Manufacturing PMI: 50.2 (January) vs 49.8