Forex News Timeline

HSBC notes how Prime Minister Sanae Takaichi’s supermajority reshapes Japan’s policy backdrop and implications for the Japanese Yen and USD/JPY. They highlight intervention risks around 158–162, stress that FX operations only buy time against fiscal concerns, and argue that a durable JPY recovery needs proactive BoJ tightening and fiscal discipline, with USD/JPY staying elevated in 1H26 before moderating later.Supermajority, intervention risk and BoJ path"With USD-JPY trading near the intervention zone of 158-162 during April-July 2024, the immediate focus for the FX market is whether Japan’s Ministry of Finance (MoF) will engage in verbal intervention as assertively as it did in January, and whether the prospect of coordinated intervention with US authorities will be highlighted once again.""While FX intervention does not resolve underlying concerns about Japan’s fiscal sustainability, it could prompt some market participants to temporarily close short JPY positions to mitigate volatility.""Such intervention can also provide time for the government to implement measures, such as tax adjustments to Nippon individual savings accounts (favouring domestic assets), regulatory measures or incentives for pension funds and insurers to increase FX hedging or shift towards domestic assets, and potential rate hikes by the Bank of Japan (BoJ), and more disciplined fiscal policy.""A sustained recovery in the JPY is likely to require a more proactive BoJ, clear evidence of fiscal discipline, and supportive capital flow measures.""Overall, we expect USD-JPY to remain choppy but elevated over the near term, before moderating in a more sustained way in 2H26."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}EUR/GBP appreciates for the second consecutive day and returns above 0.8700.The UK Government's crisis keeps the Pound on the defensive.Euro bulls are focusing on the 0.8720 and 0.8745 resistance levels.The Euro (EUR) is trading higher for the second consecutive day against the British Pound (GBP) on Tuesday. A broader GBP weakness maintainsthe Euro buoyed near 0.8700 at the time of writing, right below an important resistance area between 0.8720 and 0.8745.

The sterling is among the weakest performers of the major currencies this week, as the scandal of the links between the UK’s ambassador to the US, Lord Mandelson, and convicted sex offender Jeffrey Epstein has shaken the Labour cabinet.

Prime Minister Keir Starmer has reaffirmed his will to remain in power, but the rising calls to resign are casting a shadow of political uncertainty and are pushing the British Pound, UK stocks and government bonds lower.Technical Analysis: EUR/GBP is at the top of the descending channel

The daily chart shows the EUR/GBP trading at 0.8712, a few pips below the top of the descending channel from mid-November highs, with technical indicators reflecting a mild positive momentum. The Moving Average Convergence Divergence (MACD) histogram expands moderately, suggesting strengthening bullish impetus, and the Relative Strength Index (RSI) is at 55, showing a neutral-to-bullish bias. Bulls would need to breach the mentioned trendline resistance at 0.8720 and extend above the December 31 and January 21 highs in the area of 0.8745 to confirm a trend shift. Further up, the target would be December's peak, in the 0.8800 area.

Support is seen at Friday's low of 0.8675, ahead of the February 4 low, at 0.8612.(The technical analysis of this story was written with the help of an AI tool.) Pound Sterling Price This week The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the US Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD -0.78% -0.59% -1.28% -0.80% -0.92% -0.47% -1.32% EUR 0.78% 0.20% -0.56% -0.01% -0.14% 0.31% -0.54% GBP 0.59% -0.20% -0.45% -0.22% -0.34% 0.11% -0.74% JPY 1.28% 0.56% 0.45% 0.53% 0.41% 0.88% -0.11% CAD 0.80% 0.01% 0.22% -0.53% -0.02% 0.34% -0.53% AUD 0.92% 0.14% 0.34% -0.41% 0.02% 0.45% -0.40% NZD 0.47% -0.31% -0.11% -0.88% -0.34% -0.45% -0.85% CHF 1.32% 0.54% 0.74% 0.11% 0.53% 0.40% 0.85% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

UBS economist Paul Donovan expects US December retail sales to highlight resilient consumer spending, noting that the roughly 0.8% GDP cost of tariffs has been absorbed through lower savings rates. Combined with rising nominal incomes, this should allow US consumer spending to continue, while import and export price data are seen as less central now that tariff pass-through is better understood.US retail sales and tariff impact"US December retail sales data should show the consumer defiantly spending.""The roughly 0.8% GDP cost of tariffs has been met by consumers cutting monthly savings rates.""That, combined with rising nominal incomes, should allow consumer spending to continue.""US import and export prices are due, but these are less of a focus now the narrative about tariff cost pass through has become clear."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Silver price falls over 2.5% as traders lock in profits.The safe-haven metal may rebound amid persistent US–Iran geopolitical tensions.Fed Governor Miran said the Fed must stay politically independent, though complete independence is impossible.Silver price (XAG/USD) depreciates after two days of gains, trading around $81.70 per troy ounce during the European hours on Tuesday. Silver prices dropped more than 2.5% as traders probably booked profits, while volatility in the precious metals market remained elevated after a historic selloff in recent weeks.The safe-haven metal could regain strength amid persistent geopolitical tensions between the United States (US) and Iran. Uncertainty continues as Iran insists on maintaining uranium enrichment, a key sticking point for Washington. On Monday, the US warned American-flagged vessels to avoid Iranian waters in the Strait of Hormuz, even as both sides indicated that talks would continue following what were described as constructive discussions in Oman last Friday.US Treasury Secretary Scott Bessent blamed the sharp swings in metals prices on Chinese trading activity, characterizing the recent rally as a speculative blowoff. Commenting on Federal Reserve policy, Bessent said he expects the central bank to proceed cautiously with any balance-sheet reduction.Meanwhile, Federal Reserve (Fed) Board Governor Stephan Miran said on Monday the Fed should remain fully independent of political influence, before tempering his remarks by noting that complete, 100% independence is “impossible.”Markets currently expect the Fed to leave interest rates unchanged in March, with rate cuts priced in for June and possibly September. It is worth noting that changes in interest rates directly impact non-interest-bearing assets such as Silver.Traders are now awaiting the US Retail Sales data later in the North American session. Attention will then turn to the delayed January employment report and upcoming CPI figures later this week, which are expected to influence expectations around economic cooling and the timing of potential Federal Reserve easing. Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

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In Europe, European Central Bank (ECB) President Christine Lagarde remained confident that inflation in the region will stabilize at 2% in the medium term, in line with last week's monetary policy statement, which pointed to steady interest rates for the coming months.The economic calendar is thin in Europe on Tuesday, and the main focus will be on the US Retail Sales report and the ADP 4-week average. These indicators might set the tone ahead of Wednesday's NFP release. Euro Price Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.09% 0.16% -0.36% -0.01% 0.34% 0.29% 0.13% EUR -0.09% 0.07% -0.44% -0.10% 0.25% 0.21% 0.04% GBP -0.16% -0.07% -0.53% -0.17% 0.18% 0.13% -0.03% JPY 0.36% 0.44% 0.53% 0.35% 0.70% 0.64% 0.49% CAD 0.01% 0.10% 0.17% -0.35% 0.35% 0.30% 0.14% AUD -0.34% -0.25% -0.18% -0.70% -0.35% -0.05% -0.21% NZD -0.29% -0.21% -0.13% -0.64% -0.30% 0.05% -0.16% CHF -0.13% -0.04% 0.03% -0.49% -0.14% 0.21% 0.16% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote). Daily Digest market Movers: Concerns about employment are weighing on the USD The US Dollar remains vulnerable, with concerns about employment creation returning to the forefront. Comments from White House adviser Kevin Hasset anticipating a weaker demand for employees in the coming months, have dampened expectations of an upbeat NFP release on Wednesday and boosted bets of Fed rate cuts in the coming months. Futures markets are pricing a 17% chance of a rate cut in March and 34% in April. Investors see the central bank resuming its easing cycle after Chairman Jerome Powell steps down in May. Odds for a rate cut in June are near 75%, with beyond 70% chances of at least another rate cut before the end of the year, according to data from the CME's FedWatch Tool.On Monday, Fed officials highlighted the divergences within the bank's committee. Governor Stephen Miran, Trump's pick to the board, downplayed the inflationary effects of tariffs and reiterated his call for more rate cuts, while Atlanta Fed President Raphael Bostic said that choppy jobs data is another reason for caution and warned about questions of confidence in the US Dollar.On Tuesday, investors' attention will be on the US Retail Sales, which are expected to have grown 0.4% in December, slowing from the 0.6% advance seen in November. Excluding automobiles, sales of all other products are also expected to slow down to 0.3% from 0.5% in the previous month.Technical Analysis: EUR/USD consolidates gains at the 1.1900 area
The Euro has completed its correction from late January highs and has resumed its broader uptrend against the US Dollar. The EUR/USD pair is failing to find acceptance above 1.1900, although downside attempts remain limited for now.

Technical indicators hint at a softening positive momentum. The Moving Average Convergence Divergence (MACD) histogram remains positive, but the flat MACD line around the Signal line reflects a hesitant market. The Relative Strength Index (RSI) sits near 60, showing a moderate bullish bias. The pair was capped at 1.1925 on Monday, which closes the path to the January 30 high in the 1.1970 area. To the downside, session highs near 1.1895 are holding bears for now, further down the area between the 50% Fibonacci retracement, at 1.1834, and Monday's low, near 1.1820, will come to the focus.

(The technical analysis of this story was written with the help of an AI tool.) Euro FAQs What is the Euro? The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

The Danske Research Team highlights that EUR/GBP saw a reverse V‑shaped price action during the previous session. The move came as UK politics returned to focus, with pressure on Prime Minister Keir Starmer to resign after senior aides stepped down. The cross traded against a backdrop of softer US Dollar and mixed risk sentiment across regions.Cross reacts to renewed UK political focus"EUR/GBP was in for a reverse v shaped price action during yesterday's session as UK politics came back into focus.""In the UK, Prime Minister Keir Starmer is under pressure to resign after two aides stepped down amidst controversy over Peter Mandelson's appointment as ambassador to Washington.""Scottish Labour leader Anas Sarwar called for Starmer's resignation, but the Prime Minister has vowed to stay, citing support from key ministers and his mandate from voters."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

MUFG’s Senior Currency Analyst Michael Wan notes that the US Dollar weakened, with USD/JPY dropping below 156 and expected further downside over time. The outlook is tied to potential Bank of Japan rate hikes and Japan’s fiscal sustainability focus. Broader Dollar weakness is also linked to Chinese regulators’ stance on US Treasuries.Dollar slide highlights Yen sensitivity"USD/JPY in particular fell below the 156 handle at one point. This had a positive spillover impact to Asian currencies in our region which are sensitive to JPY movements, including KRW, SGD, THB, and to a smaller extent the likes of TWD and PHP.""Moving forward, our global team has kept their expectations for USD/JPY to move down below the 150 level over time, with an expectation for the Bank of Japan to potentially hike rates in the April meeting and with fiscal sustainability also key here.""The key drivers of Dollar weakness include a commitment by Japan’s Prime Minister Takaichi on fiscal sustainability, coupled with news that Chinese regulators are advising financial institutions to rein in their holdings of US Treasuries.""In particular, PM Takaichi acknowledge concerns among investors over the plan to cut the sales tax on food items for two years, while reiterating plans to avoid issuing bonds to fund the measure.""Overall, she said the key is to also steadily reduce Japan’s debt-to-GDP ratio, look for other venue streams or savings including revision of subsidies and tax exemptions, while also ultimately move towards longer-term system of supports such as tax credit and cash handouts that would increase household take-home pay to combat inflation pressures."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Here is what you need to know on Tuesday, February 10:The US Dollar (USD) stays resilient against its rivals early Tuesday after suffering large losses on Monday. The US economic calendar will feature Export Price Index, Import Price Index and Retail Sales data for December. Additionally, several Federal Reserve (Fed) policymakers will be delivering speeches. US Dollar Price This week The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Swiss Franc. USD EUR GBP JPY CAD AUD NZD CHF USD -0.78% -0.60% -1.24% -0.79% -0.86% -0.41% -1.30% EUR 0.78% 0.19% -0.56% -0.01% -0.08% 0.37% -0.53% GBP 0.60% -0.19% -0.43% -0.20% -0.27% 0.18% -0.71% JPY 1.24% 0.56% 0.43% 0.52% 0.45% 0.91% -0.11% CAD 0.79% 0.01% 0.20% -0.52% 0.03% 0.39% -0.51% AUD 0.86% 0.08% 0.27% -0.45% -0.03% 0.45% -0.44% NZD 0.41% -0.37% -0.18% -0.91% -0.39% -0.45% -0.89% CHF 1.30% 0.53% 0.71% 0.11% 0.51% 0.44% 0.89% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote). According to Bloomberg, Chinese regulators have verbally advised financial institutions to curb holdings of US Treasuries, citing growing concerns over concentration risk and market volatility. This development weighed heavily on the USD on Monday, with the USD Index losing more than 0.8% on the day. Early Tuesday, the USD Index holds steady at around 97.00 and US stock index futures trade mixed. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red below 4.2%.GBP/USD benefited from the broad-based USD weakness and rose more than 0.6% on Monday. The pair corrects lower and trades below 1.3700 in the European session on Tuesday. Bank of England (BoE) policymaker Catherine Mann said on Monday that US tariffs are feeding into higher UK inflation through Chinese export pricing.EUR/USD rose more than 0.8% on Monday and erased the previous week's losses. The pair stays in a consolidation phase at around 1.1900 in the European morning. The data from the Eurozone showed on Monday that the Sentix Investor Confidence improved to 4.2 in February from -1.8 in January.The selling pressure surrounding the USD and growing risks of an intervention by the Bank of Japan following the election outcome caused USD/JPY to turn south Monday. After losing nearly 1% and snapping a six-day winning streak, USD/JPY continues to stretch lower early Tuesday and was last seen trading at around 155.50.The cautious market stance helped Gold start the week on a bullish note. XAU/USD rose nearly 2% on Monday and closed above $5,050. The previous metal corrects lower in the European morning and trades near $5,030. Similarly, Silver rose nearly 7% on Monday and retraced a portion of the previous week's decline. XAG/USD struggles to preserve its bullish momentum and trades in the red below $82. US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}GBP/JPY drifts lower for the second straight day, though it lacks follow-through selling.Intervention fears and BoJ rate hike bets boost the JPY, exerting pressure on the cross.The UK political chaos contributes to the GBP’s underperformance and the intraday fall.The GBP/JPY cross attracts sellers for the second straight day and slides back closer to the overnight swing low during the early part of the European session on Tuesday. Spot prices, however, remain confined in a one-week-old range and currently trade just above mid-212.00s.The outcome of Japan's snap election on Sunday removes domestic political uncertainty. This, along with intervention warnings from Japanese authorities, underpins the Japanese Yen (JPY). Apart from this, bets that the Bank of Japan (BoJ) will stick to its policy normalization path lend additional support to the JPY, which, in turn, is seen as a key factor exerting pressure on the GBP/JPY cross.The British Pound (GBP), on the other hand, continues with its relative underperformance on the back of political risk following the resignation of UK Prime Minister Keir Starmer's chief aide, Morgan McSweeney. Moreover, the Scottish Labour leader called for Keir Starmer to resign over the fallout from the Jeffrey Epstein scandal. This further contributes to the offered tone surrounding the GBP/JPY cross.Meanwhile, firming expectations that the Bank of England (BoE) will cut interest rates again mark a significant divergence in comparison to the BoJ's hawkish outlook and favor the GBP/JPY bears . However, concerns about Japan's fiscal situation on the back of Prime Minister Sanae Takaichi's spending plans and a positive risk tone could cap the safe-haven JPY, which could limit losses for spot prices. Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

DBS Group Research highlights that its FX risk score has fallen to the lowest level since late 2021, driven mainly by a weaker US Dollar in early 2026 after a 9.4% depreciation in 2025. Economists Chua Han Teng and Daisy Sharma note that concerns over US Fed independence, US exceptionalism and fiscal sustainability continue to weigh on the Dollar.FX risk score falls on softer Dollar"This week’s featured insight is our Asset Risks Dashboard, which track conditions and gauge risk sentiments across four key asset classes (Equities, Interest Rates, Credit, and FX). Today we focus on FX.""The FX risk score has trended lower in early 2026 to its lowest level since late 2021.""The increasingly benign level primarily reflects a weaker US dollar at the start of this year, having already depreciated by 9.4% in 2025.""This continues to be due to worries surrounding the US Fed’s independence (despite the announcement of Kevin Warsh as the new Fed Chair), investor concerns regarding US exceptionalism, long-term fiscal sustainability, and ongoing policy uncertainties.""US funding conditions remain comfortable in the Euro and Japanese markets, although with slight tightening bias."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}WTI prices are supported by persistent geopolitical tensions between the US and Iran.Crude upside may be capped as diplomatic progress emerges, despite US warnings to avoid Iranian waters near Hormuz.Venezuelan Oil exports surge to 800,000 bpd in January from 498,000 bpd in December.West Texas Intermediate (WTI) Oil price continues to trade higher for a third consecutive session, trading near $64.20 per barrel during early European trading on Tuesday. Crude Oil prices are supported by ongoing geopolitical tensions between the US and Iran, while traders await the American Petroleum Institute (API) weekly inventory report due later in the day.That said, upside momentum of the crude prices could be capped by signs of diplomatic progress. On Monday, the US warned American-flagged vessels to avoid Iranian waters while passing through the Strait of Hormuz, even as both countries signaled that talks would continue after what were described as positive discussions in Oman last Friday. Still, uncertainty persists, with Iran maintaining its stance on uranium enrichment—a key point of contention for Washington.WTI price may also come under pressure from rising global supply. Venezuelan crude exports increased sharply, reaching 800,000 barrels per day (bpd) in January, up from 498,000 bpd in December, according to Reuters, potentially adding to supply-side headwinds.Meanwhile, markets are closely watching developments around India’s imports of Russian oil. Recent US–India trade discussions have reportedly been linked to a freeze on Russian crude purchases. As one of the largest buyers of Russian oil, any disruption to India’s imports could provide notable support to global oil prices. WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

Commerzbank’s Michael Pfister discusses Euro strength and its implications for EUR/USD and ECB policy. Pfister expects stronger ECB reactions only if Euro appreciation becomes significantly more pronounced.ECB reaction function to euro strength"Many ECB officials also seem to have realised recently that focusing on the strong euro is unhelpful. Following the panic that broke out two weeks ago when EUR-USD rose above 1.20, recent statements have emphasised that most of the appreciation occurred in the first quarter of 2025, when the German fiscal package was announced and the US dollar had undergone its initial significant depreciation. Therefore, I would assume that the ECB is also uncomfortable with the strong focus on the euro's appreciation and will probably only react more strongly if the appreciation becomes even more pronounced.""The euro remains a hot topic at the moment. In discussions with clients, the question often arises as to what level of EUR-USD might be too high for the ECB, i.e. at what level of euro strength might the ECB take stronger verbal action or even cut interest rates to counteract it? In line with this, officials continue to discuss the role of the euro publicly.""Macron is right to raise the issue of the strong euro, which makes euro area exports less competitive, so he will be disappointed that EUR-USD rose above 1.19 again yesterday. However, it is also important to assess the strong euro appropriately."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

UOB analysts Quek Ser Leang and Lee Sue Ann note that GBP/USD’s latest surge has stretched short-term momentum, but there is still room to test 1.3730 intraday, with limited odds of a sustained break higher. Over the next 1–3 weeks, the bank sees improving upside momentum, but stresses that a daily close above 1.3730 is required to target 1.3785.Sterling rebound faces key resistance"The advance appears to be running ahead of itself, but there is scope for GBP to test 1.3730.""The likelihood of a sustained rise above this level today is not high.""Downward momentum had faded, and there has been an increase in upward momentum, but it is not strong enough to indicate a continued advance in GBP just yet.""GBP must close above 1.3730 first before a move to 1.3785 is likely.""The probability of GBP closing above 1.3730 will increase in the next few days as long as 1.3600 (‘strong support’ level) is not breached."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CAD flat lines around 1.3560 in Tuesday’s early European session. Canada’s Unemployment Rate dipped to a 16-month low of 6.5%, which is unlikely to encourage the BoC to cut rates further. US Retail Sales data is due on Tuesday; delayed US employment report for January will take center stage on Wednesday. The USD/CAD pair trades on a flat note near 1.3560 during the early European session on Tuesday. Nonetheless, a shift in the Bank of Canada (BoC) monetary policy expectations could provide some support to the Canadian Dollar (CAD) against the Greenback. Traders await the US Retail Sales data later on Tuesday, ahead of the delayed US employment report for January. Statistics Canada revealed on Friday that Canada unexpectedly lost 24,800 jobs in January, but the losses were all part-time. However, the Unemployment Rate in Canada ticked lower to 6.5%, the lowest since September 2024, better than the expectations of 6.8%. This report has reduced the downside risk to Canada’s growth and policy outlook, narrowing expectations for aggressive BoC easing. This, in turn, could underpin the Loonie and act as a headwind for the pair. "The loonie is finding support from resilient January labor market data," said Tony Valente, senior FX dealer at AscendantFX.Traders will closely monitor the US employment report, which was pushed back slightly due to the recently ended four-day government shutdown. The jobs report, which will be released on Wednesday, is expected to show that Nonfarm Payrolls (NFP) rose 70,000 in January. The unemployment rate is seen as steady at 4.4% during the same period. An above-consensus NFP reading could lift the USD against the CAD in the near term.  Canadian Dollar FAQs What key factors drive the Canadian Dollar? The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive. How does the price of Oil impact the Canadian Dollar? The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD. How does inflation data impact the value of the Canadian Dollar? While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar. How does economic data influence the value of the Canadian Dollar? Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
 

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}AUD/USD drifts lower as weak Australian consumer sentiment backs March RBA pause.The Fed-inspired USD weakness could support the major amid the risk-on environment.Traders now look to U.S. retail sales and speeches from Fed officials for a fresh impetus.The AUD/USD pair attracts some sellers on Tuesday, eroding part of the previous day's strong move up to the 0.7100 mark or a three-year high and snapping a two-day winning streak. Spot prices slide to a fresh daily low, around the 0.7065 area, during the early European session, though the broader fundamental backdrop warrants some caution before positioning for deeper losses.Westpac and the Melbourne Institute’s consumer sentiment index fell for the third month, reflecting pressure on household spending and strengthening the case for the Reserve Bank of Australia (RBA) to pause in March. This, in turn, prompts profit-taking around the Australian Dollar (AUD) and exerts some downward pressure on the AUD/USD pair. Meanwhile, traders are still pricing in the possibility of an RBA rate hike in May amid sticky inflation, which, along with the upbeat market mood, could limit losses for the risk-sensitive Aussie.The US Dollar (USD), on the other hand, remains depressed amid the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs at least two more times in 2026. Adding to this, concerns about the central bank's independence keep the USD bulls on the defensive. Furthermore, signs of easing tensions in the Middle East further undermine the Greenback's safe-haven status amid the broader de-dollarization trend. This backs the case for the emergence of some dip-buyers around the AUD/USD pair and warrants caution for bears.Market participants now look to Tuesday's release of the monthly US Retail Sales data, which, along with Fedspeak, would drive the USD later during the North American session. The focus, however, will remain glued to the closely-watched US employment details – popularly known as the Nonfarm Payrolls (NFP) on Wednesday. Apart from this, the US consumer inflation figures on Friday should provide more cues about the Fed's rate-cut path. This, in turn, will influence the USD price dynamics and provide some meaningful impetus to the AUD/USD pair. Economic Indicator Retail Sales (MoM) The Retail Sales data, released by the US Census Bureau on a monthly basis, measures the value in total receipts of retail and food stores in the United States. Monthly percent changes reflect the rate of changes in such sales. A stratified random sampling method is used to select approximately 4,800 retail and food services firms whose sales are then weighted and benchmarked to represent the complete universe of over three million retail and food services firms across the country. The data is adjusted for seasonal variations as well as holiday and trading-day differences, but not for price changes. Retail Sales data is widely followed as an indicator of consumer spending, which is a major driver of the US economy. Generally, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish. Read more. Next release: Tue Feb 10, 2026 13:30 Frequency: Monthly Consensus: 0.4% Previous: 0.6% Source: US Census Bureau Why it matters to traders? Retail Sales data published by the US Census Bureau is a leading indicator that gives important information about consumer spending, which has a significant impact on the GDP. Although strong sales figures are likely to boost the USD, external factors, such as weather conditions, could distort the data and paint a misleading picture. In addition to the headline data, changes in the Retail Sales Control Group could trigger a market reaction as it is used to prepare the estimates of Personal Consumption Expenditures for most goods.

Scotiabank analysts Shaun Osborne and Eric Theoret note the Dollar is starting the week on the back foot after a weak close on Friday, with DXY slipping further as CHF, EUR and Japanese Yen lead gains. Analysts highlights Chinese regulators’ warning on US Treasuries as a fresh headwind for USD sentiment. Upcoming US Retail Sales, NFP and CPI are seen as key downside risks for the Dollar.USD pressured by data and China risk"After a weak close for the dollar overall on Friday, a week of key data reports is starting off with the DXY losing a bit more ground overall.""It’s unclear what impact this warning will have on appetite for US Treasury debt but the development is unhelpful for USD sentiment in the context of the recent focus on foreign investors hedging or reducing exposure to US asset markets generally.""US inflation is expected to moderate—somewhat—from late 2025 levels.""Weaker than expected jobs data and softer inflation will add to downside pressure on the USD."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

UOB analysts Quek Ser Leang and Lee Sue Ann note that EUR/USD’s sharp rally has left the pair overbought intraday, but further gains toward 1.1945 are possible before consolidation. On a 1–3 week view, the bank now sees scope for continued upside, contingent on a daily close above 1.1945 to open 1.1980, while support is defined at 1.1840.Overbought Euro still has room higher"The sharp rally appears excessive, but EUR could test 1.1945 before leveling off.""Based on the overbought momentum, a continued rise above this level appears unlikely.""Downward momentum has faded, and the rapid increase in momentum suggests that EUR could continue to rise.""However,, EUR must close above 1.1945 before a move to 1.1980 can be expected.""The odds of EUR closing above 1.1945 will remain intact as long as EUR holds above 1.1840 (‘strong support’ level)."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/JPY edges lower to near 185.00 in Tuesday’s early European session. Takaichi’s ruling LDP secured a comprehensive victory in Sunday’s election, boosting the Japanese Yen. The cross keeps the positive view, but consolidation cannot be ruled out in the near term with neutral RSI momentum. The first upside barrier emerges at 186.28; the initial support level is seen at 184.37. The EUR/JPY cross trades in negative territory around 185.00 during the early European session on Tuesday. The Japanese Yen (JPY) gathers strength against the Euro (EUR) after Prime Minister Sanae Takaichi romped to a landslide victory in Japan's snap election on Sunday.Takaichi has led the ruling Liberal Democratic Party (LDP) to a historic landslide win. The LDP won 316 of the 465 seats in Japan’s lower house, the first time a single party has secured two-thirds of the chamber since World War II.Nonetheless, analysts expect the JPY to weaken in the long run, noting the spotlight will soon be on Takaichi's fiscal policies. Takaichi’s vow to accelerate talks on cutting the sales tax on food raises concerns over how Japan will pay for her plans to ramp up defense and other spending. This, in turn, could undermine the JPY and act as a tailwind for the cross. The Japanese government is set to submit its choice of nominee as early as February 25. The nominee must be approved by both the lower house and upper house of the National Diet. Japan’s Finance Minister stated that the government aims to pass next year’s budget and tax reform as quickly as possible.Technical Analysis:In the daily chart, EUR/JPY holds comfortably above the 100-day EMA at 180.62, preserving a firm bullish bias as the average continues to slope higher. Price sits in the upper half of the Bollinger envelope, with the bands showing mild contraction that points to reduced volatility. RSI at 54 (neutral) signals steady momentum. A sustained close above the upper band at 186.28 could extend gains, while a break below the middle band near 184.37 would expose support at the lower band around 182.46.The 100-day EMA continues to rise beneath price, and pullbacks toward that average would be met by buyers. The Bollinger Bands have flattened modestly after prior expansion, favoring consolidation within the envelope. RSI around 54 remains neutral, leaving room for trend continuation after a pause.(The technical analysis of this story was written with the help of an AI tool.) Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/USD softens to near 1.1905 in Tuesday’s early European session. Traders remain cautious ahead of a US data-heavy week. The ECB is anticipated to keep interest rates steady through the remainder of 2026.The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.White House economic adviser Kevin Hassett said on Monday that US job growth might stall in the coming months due to slower labor force growth and higher productivity.  The Nonfarm Payrolls (NFP) report, which is due on Wednesday, is projected to show an increase of 70,000 jobs in January, while the Unemployment Rate is estimated to hold steady at 4.4% during the same period. In case of weaker-than-expected outcomes, this could weigh on the Greenback and act as a tailwind for the major pair. On the other hand, any signs of improvement in the US labor market could underpin the USD against the Euro. Across the pond, the European Central Bank (ECB) held its benchmark interest rate at 2.0% for the fifth meeting in a row last week, as widely expected. During the press conference, ECB President Christine Lagarde said that the central bank would maintain its data-dependent and “meeting-by-meeting approach” and would not be “precommitting to a particular rate path.” Around 85% of economists surveyed by Reuters in their January poll said the ECB would keep the interest rates steady over the rest of 2026.  Euro FAQs What is the Euro? The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CHF moves little as the US Dollar weakens on softer foreign demand after China urged curbs on US Treasury holdings.US one-year inflation expectations eased to 3.1% in January from 3.4%, the lowest in six months.SNB Chairman Martin Schlegel flagged challenges from persistently low inflation, reaffirming commitment to the 0–2% price stability target.USD/CHF holds ground after two days of losses, trading around 0.7670 during the Asian hours on Tuesday. The pair could weaken further as the US Dollar (USD) remains under pressure amid concerns that foreign demand for dollar-denominated assets may soften, after Chinese regulators urged financial institutions to limit US Treasury holdings to reduce concentration risks and exposure to uncertain US economic policies.The Greenback remains under pressure as improving risk sentiment ahead of a heavy US data calendar this week dampens demand and influences expectations for the Federal Reserve’s policy path. Markets anticipate rates to be held in March, with the first cut likely in June and a potential follow-up in September.US inflation expectations have eased, with median one-year-ahead expectations falling to 3.1% in January from 3.4% in December, the lowest in six months. Food price expectations were steady at 5.7%, while three- and five-year expectations remained unchanged at 3%.Markets currently expect the Fed to keep interest rates unchanged in March, with potential rate cuts anticipated in June and possibly September. San Francisco Fed President Mary Daly said in a LinkedIn post on Friday that the economy may remain in a low-hiring, low-firing environment, though it could also shift toward a no-hiring, higher-firing phase.Traders are awaiting Switzerland’s January inflation data, due on Friday, with analysts expecting annual inflation to remain subdued at 0.1%. Swiss National Bank (SNB) Chairman Martin Schlegel has recently highlighted the challenges posed by persistently low inflation and the policy rate at 0%, underscoring the central bank’s commitment to price stability within its 0–2% target range.SNB Chairman Schlegel added that the SNB would closely monitor movements in the Swiss franc and stand ready to intervene in FX markets if necessary, rather than rushing into further rate cuts. He reiterated that the current policy stance remains appropriate, as inflation is expected to pick up in the coming months. Swiss Franc FAQs What key factors drive the Swiss Franc? The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone. Why is the Swiss Franc considered a safe-haven currency? The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in. How do decisions of the Swiss National Bank impact the Swiss Franc? The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF. How does economic data influence the value of the Swiss Franc? Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate. How does the Eurozone monetary policy affect the Swiss Franc? As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Gold struggles to build on its gains registered over the past two days amid mixed fundamental cues.The risk-on mood undermines the safe-haven precious metal, though dovish Fed bets lend support.Concerns about the Fed’s independence further undermine the USD and favor the XAU/USD bulls.Gold (XAU/USD) drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.Meanwhile, investors expect the US Federal Reserve (Fed) to deliver at least two 25-basis-point rate cuts in 2026. This, along with concerns about the US central bank's independence, keeps the US Dollar (USD) depressed near its lowest level in more than one week and acts as a tailwind for the non-yielding Gold. Traders also seem reluctant to place aggressive directional bets ahead of Wednesday's release of the crucial US Nonfarm Payrolls (NFP) report and the latest US consumer inflation figures on Friday.Daily Digest Market Movers: Gold drifts lower as receding safe-haven demand counters Fed rate cut bets, bearish USDIndirect talks between the US and Iran on the future of the latter's nuclear program ended on Friday with a broad agreement to maintain a diplomatic path. This eases concerns about a military confrontation in the Middle East, boosting investors' confidence. This remains supportive of the upbeat market mood and drives flows away from the safe-haven Gold during the Asian session on Tuesday.Talks between the US and Iran on the future of the latter's nuclear program ended on Friday with a broad agreement to maintain a diplomatic path. Iran's Foreign Minister, Abbas Araghchi, described the eight hours of meetings as a good start conducted in a good atmosphere. US President Donald Trump described the talks as very good and said that another meeting would be held early this week.Meanwhile, concerns about the US Federal Reserve's independence resurfaced after Trump said on Saturday that he might sue his newly selected Fed chair nominee, Kevin Warsh, if he didn’t lower interest rates. Moreover, US Treasury Secretary Scott Bessent last Thursday refused to rule out the possibility of a criminal investigation of Kevin Warsh if he ends up refusing to cut interest rates.This comes amid the growing acceptance that the US central bank will lower borrowing costs two more times this year, with the first rate cut expected in June, and drags the US Dollar to over a one-week low. This, in turn, acts as a tailwind for the non-yielding yellow metal and limits losses. Traders now look to this week's important US macro releases for more cues about the Fed's rate-cut path.A rather busy week kicks off with the release of the US monthly Retail Sales data, due later during the North American session this Tuesday. The focus, however, remains on the closely-watched US jobs report – popularly known as the Nonfarm Payrolls report – on Wednesday and the US consumer inflation figures on Friday. These data releases will drive the USD and provide a fresh impetus to the XAU/USD pair.The People's Bank of China reported on Saturday that the central bank continued its gold purchases for the 15th straight month in January, highlighting steady demand amid fiscal concerns in major economies. Moreover, reports suggest that Chinese regulators have advised financial institutions to curb holdings of US Treasuries due to concern over concentration risk and market volatility.Gold needs to surpass last week’s swing high to back the case for any further move upThe overnight failure near last week's swing low warrants some caution before placing fresh bullish bets around the precious metal. The Moving Average Convergence Divergence (MACD) histogram stays positive but contracts, suggesting fading momentum as the MACD line holds above the signal line and above zero. The RSI at 55 (neutral) reflects balanced conditions with a mild upside tilt.Meanwhile, the rising trend line from $4,397.52 underpins the bullish bias, offering support near $4,819.19. Should the Gold price defend the ascending support, bulls could extend the recovery, while a close beneath it would challenge the uptrend and open room for a deeper pullback toward $4,397.52.A re-widening positive MACD histogram would strengthen buying pressure, whereas a drift back toward the zero line would flag waning demand; RSI holding above 50 would keep buyers in control, but a slide toward 45 would tilt bias back to range.(The technical analysis of this story was written with the help of an AI tool.) Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Gold prices fell in India on Tuesday, according to data compiled by FXStreet.The price for Gold stood at 14,670.37 Indian Rupees (INR) per gram, down compared with the INR 14,834.58 it cost on Monday.The price for Gold decreased to INR 171,113.70 per tola from INR 173,027.60 per tola a day earlier.Unit measureGold Price in INR1 Gram14,670.3710 Grams146,705.50Tola171,113.70Troy Ounce456,299.80FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up. (An automation tool was used in creating this post.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}GBP/USD weakens to near 1.3685 in Tuesday’s early European session. UK Prime Minister Starmer said he's going nowhere after rumors of resignation. The US December Retail Sales data will be the highlight on Tuesday, ahead of the NFP report. The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling (GBP) edges lower against the US Dollar (USD) amid political risk in the United Kingdom (UK) and rising expectations of near-term Bank of England (BoE) rate cuts. UK Prime Minister Keir Starmer faced a significant challenge to his leadership as Scottish Labour leader Anas Sarwar called on him to resign over the fallout from the Jeffrey Epstein scandal. Starmer  continues fighting to shore up his position, saying that "after having fought so hard for the chance to change our country, I'm not prepared to walk away from my mandate and my responsibility to my country or to plunge us into chaos as others have done."The Bank of England (BoE) is very close to cutting interest rates again after new forecasts showed inflation easing below the 2% target as early as April. Traders raise their bets for a BoE rate reduction, potentially as soon as March. This, in turn, might contribute to the Cable’s downside. “We continue to expect the next rate cut in March. After that, we think the BOE will deliver a prolonged pause before resuming policy normalization in early 2027 (we see a terminal rate of 3.00% by mid-2027),” said Dani Stoilova, UK and Europe economist at BNP Paribas Markets 360.On the USD’s front, the Retail Sales reading for December is due later on Tuesday. All eyes will be on the delayed jobs report for January on Wednesday. Markets' consensus forecasts the Nonfarm Payrolls (NFP) to increase by 70,000 in January, with the Unemployment Rate holding at 4.4%. Any signs of weakening in the US labor market and softer inflation could undermine the Greenback and help limit the major pair’s losses.  Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}US Dollar Index weakens on fears of softer foreign demand after China urged curbs on US Treasury holdings.The Greenback weakens as improved risk sentiment and heavy US data temper demand and Fed policy expectations.US one-year inflation expectations eased to 3.1% in January from 3.4%, the lowest in six months.The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, remains subdued for the third successive session and is trading near 96.80 during the Asian hours on Tuesday. Traders will likely observe US Retail Sales data due later in the North American session.The US Dollar faces challenges amid concerns that foreign demand for dollar-denominated assets may weaken, after Chinese regulators urged financial institutions to curb US Treasury holdings to reduce concentration risks and exposure to uncertain US economic policies.The Greenback is under pressure as improving risk sentiment ahead of a heavy US data calendar this week tempers demand and shapes expectations for the Fed’s policy outlook. Markets expect rates to be held in March, with the first cut likely in June and a possible follow-up in September.US inflation expectations have eased, with median one-year-ahead expectations falling to 3.1% in January from 3.4% in December, the lowest in six months. Food price expectations were steady at 5.7%, while three- and five-year expectations remained unchanged at 3%.Markets currently expect the Fed to keep interest rates unchanged in March, with potential rate cuts anticipated in June and possibly September. San Francisco Fed President Mary Daly said in a LinkedIn post on Friday that the economy may remain in a low-hiring, low-firing environment, though it could also shift toward a no-hiring, higher-firing phase.Traders await the delayed January US employment report and upcoming CPI data due later in the week, which are expected to shape views on economic cooling and the timing of potential Federal Reserve easing.Federal Reserve Board Governor Stephan Miran said on Monday the Fed should remain fully independent of political influence, before tempering his remarks by noting that complete, 100% independence is “impossible.” US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/INR declines as the Rupee finds support from tentative signs of improving equity inflows.Foreign investors bought about $250 million on Monday into Indian markets.The US and India reached a broad trade deal, with India committing over $500 billion in purchases.USD/INR loses ground on Tuesday after two days of gains. However, the Indian Rupee (INR) struggled against the US Dollar (USD) in the previous session, with bankers citing hedging activity and routine local flows.However, the INR may find support from tentative signs of improving equity inflows, as foreign investors bought around $250 million of Indian shares on Monday, lifting total monthly purchases to about $1.5 billion. This compares with nearly $4 billion in outflows recorded in January, according to Reuters.The downside of the Indian Rupee was limited amid the United States (US)–India interim trade framework. New Delhi and Washington on Friday unveiled an interim framework aimed at lowering tariffs, reshaping energy ties, and deepening economic cooperation. The announcement follows a breakthrough in prolonged negotiations earlier last week and helped lift the Rupee to its strongest weekly gain in more than three years, according to Reuters.The US and India reached a wide-ranging trade agreement involving India buying more than $500 billion in purchases, tariff reductions, and provisions on digital trade, significantly reshaping bilateral commercial relations. India will also eliminate or lower tariffs on US industrial products and a broad spectrum of agricultural goods, with reductions covering food items such as grains, edible oils, fruit, wine and spirits.US Dollar declines as sentiment improves ahead of looming dataThe US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends its losses for the third successive session and is trading near 96.80 at the time of writing.Traders await the delayed January US employment report and upcoming CPI data, which are expected to shape views on economic cooling and the timing of potential Federal Reserve easing.Market sentiment has improved ahead of a heavy slate of US data due this week, helping assess economic health and refine expectations for the Fed’s policy path. Markets anticipate the Fed will hold rates in March, with a first cut likely in June and a possible follow-up in September.US inflation expectations eased, with median one-year-ahead inflation expectations falling to 3.1% in January, the lowest in six months, from 3.4% in December. Food price expectations were unchanged at 5.7%, while three- and five-year expectations remained steady at 3%.Markets currently expect the Fed to keep interest rates unchanged in March, with potential rate cuts anticipated in June and possibly September. San Francisco Fed President Mary Daly said in a LinkedIn post on Friday that the economy may remain in a low-hiring, low-firing environment, though it could also shift toward a no-hiring, higher-firing phase.Fed Governor Phillip Jefferson said future policy decisions will be guided by incoming data and assessments of the economic outlook, adding on Friday that the labor market is gradually stabilizing. Meanwhile, Atlanta Fed President Raphael Bostic noted that inflation has remained elevated for too long, stressing in a Bloomberg interview on Friday that the Fed cannot lose sight of inflationary risks.USD/INR remains below nine-day EMA near 91.00USD/INR is trading around 90.80 at the time of writing. Daily chart analysis points to an ongoing bearish bias, with the pair trading within a descending channel pattern. The 14-day Relative Strength Index (RSI) at 48 (neutral-bearish) reflects cooling momentum after recent overbought readings. Near-term resistance aligns at 90.8912, while support is seen at 90.5008.The initial support lies at the 50-day Exponential Moving Average (EMA) at 90.50. A break below the medium-term price momentum will expose the lower boundary of the descending channel around 89.50. On the upside, the immediate resistance is seen at the nine-day EMA at 90.90. Further advances would lead the pair to approach the upper channel boundary around 91.70, followed by the January 28 all-time high of 92.51.USD/INR: Daily Chart(The technical analysis of this story was written with the help of an AI tool.) US Dollar Price Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD INR USD 0.00% 0.03% -0.47% -0.07% 0.21% 0.20% -0.03% EUR 0.00% 0.03% -0.46% -0.07% 0.21% 0.20% -0.03% GBP -0.03% -0.03% -0.49% -0.10% 0.18% 0.17% -0.06% JPY 0.47% 0.46% 0.49% 0.40% 0.67% 0.66% 0.44% CAD 0.07% 0.07% 0.10% -0.40% 0.27% 0.26% 0.04% AUD -0.21% -0.21% -0.18% -0.67% -0.27% -0.01% -0.25% NZD -0.20% -0.20% -0.17% -0.66% -0.26% 0.00% -0.22% INR 0.03% 0.03% 0.06% -0.44% -0.04% 0.25% 0.22% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote). Indian Rupee FAQs What are the key factors driving the Indian Rupee? The Indian Rupee (INR) is one of the most sensitive currencies to external factors. The price of Crude Oil (the country is highly dependent on imported Oil), the value of the US Dollar – most trade is conducted in USD – and the level of foreign investment, are all influential. Direct intervention by the Reserve Bank of India (RBI) in FX markets to keep the exchange rate stable, as well as the level of interest rates set by the RBI, are further major influencing factors on the Rupee. How do the decisions of the Reserve Bank of India impact the Indian Rupee? The Reserve Bank of India (RBI) actively intervenes in forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, the RBI tries to maintain the inflation rate at its 4% target by adjusting interest rates. Higher interest rates usually strengthen the Rupee. This is due to the role of the ‘carry trade’ in which investors borrow in countries with lower interest rates so as to place their money in countries’ offering relatively higher interest rates and profit from the difference. What macroeconomic factors influence the value of the Indian Rupee? Macroeconomic factors that influence the value of the Rupee include inflation, interest rates, the economic growth rate (GDP), the balance of trade, and inflows from foreign investment. A higher growth rate can lead to more overseas investment, pushing up demand for the Rupee. A less negative balance of trade will eventually lead to a stronger Rupee. Higher interest rates, especially real rates (interest rates less inflation) are also positive for the Rupee. A risk-on environment can lead to greater inflows of Foreign Direct and Indirect Investment (FDI and FII), which also benefit the Rupee. How does inflation impact the Indian Rupee? Higher inflation, particularly, if it is comparatively higher than India’s peers, is generally negative for the currency as it reflects devaluation through oversupply. Inflation also increases the cost of exports, leading to more Rupees being sold to purchase foreign imports, which is Rupee-negative. At the same time, higher inflation usually leads to the Reserve Bank of India (RBI) raising interest rates and this can be positive for the Rupee, due to increased demand from international investors. The opposite effect is true of lower inflation.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}USD/CNH prolongs its recent well-established downtrend and seems vulnerable to slide further.A breakdown below a short-term descending channel validates the negative outlook for the pair.The daily RSI points to oversold conditions and could trigger a modest recovery in the near term.The USD/CNH pair trades with a negative bias for the fourth consecutive day and drops to a fresh low since May 2023 during the Asian session on Tuesday. Spot prices currently trade around the 6.9060 area, down over 0.10% for the day, and seem vulnerable to prolong a well-established medium-term downtrend from the April 2025 swing high.With the latest leg down, the USD/CNH pair confirms a fresh breakdown through the lower boundary of a descending channel.  The Moving Average Convergence Divergence (MACD) shows the MACD line below the Signal line near the zero mark, and the negative histogram is modestly widening, suggesting strengthening downside momentum and validating the negative outlook for the USD/CNH pair.However, the Relative Strength Index (RSI) at 27 (oversold) flags stretched selling, which could slow the decline even as bears retain control. Nevertheless, a decisive break beneath the channel floor already seems to have set the stage for further slide. The MACD would need to contract back toward zero to hint at fading pressure, and an RSI rebound above 30 could encourage a corrective bounce.That said, the prevailing descending structure would temper upside attempts, and any recovery would face initial resistance at 6.9495, where the upper boundary caps gains.(The technical analysis of this story was written with the help of an AI tool.)USD/CNH daily chart US Dollar Price This week The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD -0.82% -0.73% -1.35% -0.89% -1.12% -0.60% -1.38% EUR 0.82% 0.09% -0.57% -0.08% -0.31% 0.22% -0.57% GBP 0.73% -0.09% -0.36% -0.17% -0.40% 0.10% -0.66% JPY 1.35% 0.57% 0.36% 0.50% 0.27% 0.81% -0.11% CAD 0.89% 0.08% 0.17% -0.50% -0.13% 0.31% -0.50% AUD 1.12% 0.31% 0.40% -0.27% 0.13% 0.53% -0.27% NZD 0.60% -0.22% -0.10% -0.81% -0.31% -0.53% -0.79% CHF 1.38% 0.57% 0.66% 0.11% 0.50% 0.27% 0.79% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

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Renewed US Dollar demand could weigh on the Silver price, but safe-haven demand might cap its downside.  Traders will take more cues from the US Retail Sales data on Tuesday, ahead of the US jobs report.  Silver price (XAG/USD) falls to around $82.65 during the Asian trading hours on Tuesday, pressured by a modest rebound in the US Dollar (USD). Traders book some profits from recent price run-ups while reassessing the strength of the economy and inflation. The key US economic data will be published later this week, including delayed US employment data for January and inflation reports. The upbeat US economic data released last week provided some support to the Greenback and weighed on the USD-denominated commodity price. Consumer confidence in the US improved slightly in February, with the University of Michigan's Consumer Sentiment Index rising to 57.3 from 56.4 in January. This figure came in above the market consensus of 55. However, geopolitical tensions and uncertainty could boost a safe-haven asset such as Silver. Iran’s President Masoud Pezeshkian described last week's nuclear talks with the US as “a step forward,” even as he pushed back against any attempts at intimidation. Meanwhile, the risks remain, as the Iranian foreign minister also stated that the country will strike US bases in the Middle East if it is attacked by US forces.The release of the US Retail Sales data will be in the spotlight on Tuesday. The figure is expected to show an increase of 0.4% MoM in December, compared to 0.6% in November. Traders will shift their attention to the delayed employment report for January, which is due on Wednesday. Markets forecast the Nonfarm Payrolls (NFP) to increase by 70,000 in January, with the Unemployment Rate holding at 4.4%. Any signs of weakening in the US labor market and softer inflation could underpin the white metal in the near term.  Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Japanese Yen remains on the front foot against a bearish USD for the second straight day.The removal of political uncertainty and hawkish BoJ expectations lends support to the JPY.The intervention risk backs the case for further JPY upside amid a bearish USD sentiment.The Japanese Yen (JPY) attracts fresh buyers following a modest Asian session downtick on Tuesday and looks to build on its recovery from a two-week low, touched against the US Dollar (USD) the previous day. Japan's Prime Minister Sanae Takaichi led the ruling Liberal Democratic Party (LDP) to a historic landslide victory in the lower house election on Sunday. The outcome strengthens Takaichi's authority to push through her ambitious fiscally expansionary policies and adds to concerns about Japan's already strained public finances, which might keep the JPY bulls on the defensive.Apart from this, the prevailing risk-on environment might further contribute to capping the upside for the safe-haven JPY. The US Dollar (USD), on the other hand, struggles to attract any buyers amid dovish Federal Reserve (Fed) expectations and also acts as a headwind for the USD/JPY pair. Furthermore, investors seem convinced that Japanese authorities will step in to stem JPY fall. This, along with bets that the Bank of Japan (BoJ) will stick to its policy normalization path, favors the JPY bulls and suggests that the path of least resistance for the currency pair remains to the downside.Japanese Yen remains on the front foot as intervention fears and hawkish BoJ counter fiscal woesJapanese Prime Minister Sanae Takaichi's ruling Liberal Democratic Party (LDP) secured a comprehensive victory in Sunday’s election and won 316 of the 465 seats in the lower house. This is the first time a single party has secured a supermajority with two-thirds of seats since the establishment of Japan’s parliament in 1947.The clear mandate gives Takaichi the power to override any legislative veto from the upper house and the leeway to pursue her growth-friendly policies. This further raises the risk of fiscal sustainability, which typically leads to higher long-dated Japanese government bond yields, rising equities, and a weaker Japanese Yen.Apart from the removal of political uncertainty, signs of easing tensions in the Middle East boost investors' appetite for riskier assets and prompt some intraday selling around the safe-haven JPY during the Asian session on Tuesday. However, the intervention risk acts as a tailwind for the JPY and caps gains for the USD/JPY pair.In fact, Finance Minister Satsuki Katayama stressed that Japan retains the right to intervene against moves that deviate from fundamentals. Adding to this, Japan's top currency diplomat, Atsushi Mimura, stated that he was closely watching moves with a high sense of urgency, suggesting that a direct intervention remains likely.Meanwhile, the US Dollar continues with its relative underperformance amid bets that the Federal Reserve will cut interest rates two more times this year, which marks a significant divergence in comparison to hawkish BoJ. Apart from this, concerns about the US central bank's independence keep the USD bulls on the defensive.US Treasury Secretary Scott Bessent last Thursday refused to rule out the possibility of a criminal investigation of Kevin Warsh if he ends up refusing to cut interest rates. Adding to this, US President Donald Trump said on Saturday that he might sue his newly selected Fed chair nominee if he didn’t lower interest rates.Meanwhile, Bloomberg News reported on Monday that Chinese regulators have advised financial institutions to curb holdings of US Treasuries due to concern over concentration risk and market volatility. This, in turn, favors the USD bears and backs the case for a further near-term depreciating move for the USD/JPY pair.Traders now look forward to Tuesday's release of the US monthly Retail Sales, which, along with Fedspeak, might influence the USD demand. The focus, however, remains on the US Nonfarm Payrolls report on Friday and the US consumer inflation figures on Friday, which would offer more cues about the Fed's rate-cut path.USD/JPY bears await break below 155.60-155.50 confluence before placing fresh betsThe USD/JPY bears await a sustained break below the 155.60-155.50 confluence – comprising the 200-hour Simple Moving Average (SMA) and the 38.2% Fibonacci retracement level of the recent upswing from the January swing low. The rising SMA suggests dips could find dynamic support at the average. The Moving Average Convergence Divergence (MACD) line nudges above the Signal line near the zero level, and the histogram has turned marginally positive, hinting at improving momentum. Hence, a sustained hold above the said confluence support would keep recovery prospects alive.The Relative Strength Index (RSI) sits at 39, below the midline and signaling subdued buying pressure, suggesting that a break under 154.91 could extend the pullback to the 50% retracement at 154.91. The latter marks a deeper floor, and a break under could extend the pullback.Intraday tone remains guided by the rising 200-period SMA, which supports the downside and keeps sellers contained as long as price trades above it. MACD’s slight positive bias would strengthen if the histogram expands further, opening scope for an upside extension; a fade back below zero would undermine momentum. RSI remains below 50, and a move toward the midline would improve the near-term profile. Overall, maintaining traction above the SMA-backed support leaves room for buyers to press higher, while a loss of momentum would shift focus back to the retracement floor noted above.(The technical analysis of this story was written with the help of an AI tool.) Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}AUD/USD stays under pressure as the Australian Dollar weakens on mixed data and worsening market sentiment.Westpac Consumer Confidence fell 2.6% MoM to a 10-month low after the first rate hike in over two years.Investors await delayed January US jobs data and CPI to gauge economic cooling and the timing of potential Fed easing.AUD/USD remains subdued after two days of gains, trading around 0.7090 during the Asian hours on Tuesday. The pair remains under pressure as the Australian Dollar (AUD) weakens amid deteriorating market sentiment following mixed domestic data.Westpac Consumer Confidence fell 2.6% month-on-month (MoM) to a 10-month low of 90.5 in February, weighed by a 25 basis-point rate hike, the first in over two years. Meanwhile, NAB’s Business Confidence Index edged up to 3 in January from a downwardly revised 2, marking its highest level since October.Investors are awaiting the delayed January US employment report and upcoming CPI data, which are expected to shape views on economic cooling and the timing of potential Federal Reserve easing.Sentiment has improved ahead of a heavy slate of US data due this week, helping assess economic health and refine expectations for the Fed’s policy path. Markets anticipate the Fed will hold rates in March, with a first cut likely in June and a possible follow-up in September.US inflation expectations eased, with median one-year-ahead inflation expectations falling to 3.1% in January, the lowest in six months, from 3.4% in December. Food price expectations were unchanged at 5.7%, while three- and five-year expectations remained steady at 3%.US Treasury Secretary Scott Bessent on Thursday declined to rule out the possibility of a criminal investigation into Kevin Warsh, President Donald Trump’s nominee for US Federal Reserve (Fed) chair, should Warsh refuse to cut interest rates. Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CAD may depreciate as foreign inflows increase after strong labor data, firm commodities, and shifting policy expectations in Canada.Canada’s Unemployment fell to 6.5% in January, and 3.3% wage growth reduced near-term BoC easing odds.Investors await delayed January US jobs data and CPI to gauge economic cooling and the timing of potential Fed easing.USD/CAD snaps a two-day losing streak, trading near 1.3560 during Tuesday’s Asian session. However, downside risks persist as the Canadian Dollar (CAD) finds support from renewed foreign inflows, underpinned by resilient domestic labor conditions, firm commodity prices, and shifting monetary policy expectations in Canada.Canada’s Unemployment Rate fell to 6.5% in January, the lowest since September 2024. Stronger full-time employment growth near 3.3% weakened the case for near-term Bank of Canada (BoC) easing, keeping Canadian real returns relatively attractive.Investors are now awaiting the delayed January US employment report and upcoming CPI data, which are expected to further shape views on the pace of economic cooling and the timing of potential Federal Reserve (Fed) policy easing.Meanwhile, investor sentiment has improved ahead of a heavy slate of US economic data due this week, which should help gauge the health of the US economy and refine expectations for the Federal Reserve’s policy path. Markets currently expect the Fed to hold rates in March, with a first cut likely in June and a possible follow-up in September.Adding to the constructive tone, US inflation expectations eased. Median one-year-ahead inflation expectations fell to 3.1% in January, the lowest in six months, from 3.4% in December. Expectations for food prices were unchanged at 5.7%, while broader price expectations held steady at 3% for both three-year and five-year horizons. Canadian Dollar FAQs What key factors drive the Canadian Dollar? The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive. How does the price of Oil impact the Canadian Dollar? The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD. How does inflation data impact the value of the Canadian Dollar? While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar. How does economic data influence the value of the Canadian Dollar? Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}WTI price slumps to near $63.80 in Tuesday’s early Asian session. Traders will closely monitor the developments surrounding tensions between the US and Iran.The US advised ships to avoid Iran. West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.80 during the early Asian trading hours on Tuesday. The WTI price falls as concerns about supply disruptions in the Middle East have faded. Traders brace for the release of the American Petroleum Institute (API) weekly report, which will be released later on Tuesday. An increase in crude exports from Venezuela could boost global oil supplies and weigh on the WTI price. Reuters reported last Monday that Venezuelan crude exports climbed to 800,000 barrels per day (bpd) in January from 498,000 bpd in December.The black gold loses momentum after the United States (US) and Iran pledged to continue indirect talks following what they described as positive discussions. Iran’s President Masoud Pezeshkian described the Friday nuclear talks with the US as “a step forward,” even as he pushed back against any attempts at intimidation. However, an escalation of geopolitical risk in the Middle East could add a risk premium to crude oil, supporting the WTI price. The US Department of Transportation on Monday issued a maritime advisory stating that American-flagged ships should stay as far as possible from Iranian waters when navigating the Strait of Hormuz, per Reuters. The Iranian foreign minister said that the country will strike US bases in the Middle East if it is attacked by US forces.“The Iranian risk premium cannot be fully defused as long as U.S. warships are located where they are,” said SEB analyst Bjarne Schieldrop. WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 6.9458 compared to the previous day's fix of 6.9523 and 6.9135 Reuters estimate. PBOC FAQs What does the People's Bank of China do? The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market. Who owns the PBoC? The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts. What are the main policy tools used by the PBoC? Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi. Are private banks allowed in China? Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/USD edges lower during the Asian session amid a modest USD uptick.The divergent Fed-ECB policy outlooks might continue to support the pair.Traders now look to the US Retail Sales and Fed speak for a fresh impetus.The EUR/USD pair is seen consolidating its strong gains registered over the past two days and oscillating in a narrow band during the Asian session on Tuesday. Spot prices currently trade around the 1.1900 mark, just below an over one-week high touched the previous day.The US Dollar (USD) recovers a part of the previous day's heavy losses to a six-day low and turns out to be a key factor acting as a headwind for the EUR/USD pair. Any meaningful USD appreciation, however, seems elusive in the wake of the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs two more times this year. Furthermore, the prevailing risk-on environment might contribute to capping the safe-haven Greenback.Meanwhile, Bloomberg News reported on Monday that Chinese regulators have advised financial institutions to curb holdings of U.S. Treasuries due to concern over concentration risk and market volatility. This comes amid concerns about the US central bank's independence, which, in turn, favors the USD bears. Apart from this, the European Central Bank's (ECB) relatively hawkish outlook should benefit the Euro and further support the EUR/USD pair.In fact, the ECB has been on hold since ending a year-long run of rate cuts in June, and surprisingly resilient growth has taken all pressure off policymakers to provide any further support. This marks a significant divergence in comparison to bets for further policy easing by the Fed and suggests that the path of least resistance for the EUR/USD pair is to the upside. Hence, any corrective pullback could be seen as a buying opportunity and remain limited.Market participants now look forward to the US monthly Retail Sales data, which, along with speeches from influential FOMC members, could influence the USD. The focus, however, will remain glued to the delayed release of the US Nonfarm Payrolls (NFP) report on Wednesday. Apart from this, the latest US consumer inflation figures on Friday would offer cues about the Fed's rate-cut path, which will drive the USD and provide a fresh impetus to the EUR/USD pair. Euro FAQs What is the Euro? The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Gold price falls to around $5,035 in Tuesday’s early Asian session. Risk-on sentiment weighs on the Gold price, but strong demand from major central banks might cap its downside. The delayed US January employment report will be in the spotlight on Wednesday. Gold price (XAU/USD) attracts some sellers near $5,035 during the early Asian session on Tuesday. The precious metal edges lower amid improved risk sentiment and some profit-taking. Traders brace for key US economic data later this week, including delayed employment and inflation reports. The yellow metal retreats after rising over the previous two days, as traders returned to equities on improved risk sentiment. The S&P 500 extends the rally to near its all-time highs following a volatile week. Additionally, hopes for the United States (US)-Iran negotiations could undermine a traditional asset such as Gold. Iran’s President Masoud Pezeshkian described the Friday nuclear talks with the US as “a step forward,” even as he pushed back against any attempts at intimidation. The potential downside for gold might be limited due to signs of strong demand. Data over the weekend showed that the People's Bank of China (PBOC) extended its gold buying reserve for a 15th straight month in January. The Chinese central bank’s gold holdings climbed to 74.19 million fine troy ounces by the end of January, up from 74.15 million the previous month.  All eyes will be on the US January jobs data on Wednesday, as it could offer more clarity on the US Federal Reserve’s (Fed) policy direction. The US economy is expected to see 70,000 jobs added in January, while the Unemployment Rate is estimated to hold at 4.4%. On Friday, the US Consumer Price Index (CPI) inflation data will be in the spotlight. Any signs of weakening in the US labor market or easing inflation could drag the US Dollar (USD) lower and support the USD-denominated commodity price in the near term.  Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/JPY weakens to around 155.90 in Tuesday’s early Asian session. The Japanese Yen recovers after Takaichi’s election victory. Traders will keep an eye on the US Retail Sales data on Tuesday ahead of the delayed employment report. The USD/JPY pair tumbles to near 155.90 during the early Asian session on Tuesday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) after Japanese Prime Minister Sanae Takaichi led the ruling Liberal Democratic Party (LDP) to a historic landslide win. Traders braced for key US economic data that could offer more clues on the Federal Reserve's (Fed) monetary policy.Takaichi’s LDP secured a comprehensive victory in Sunday’s election. The LDP won 316 of the 465 seats in Japan’s lower house, the first time a single party has secured two-thirds of the chamber since the establishment of Japan’s parliament in 1947. This headline, along with the verbal intervention from Japanese officials, provides some support to the JPY and creates a headwind for the pair. Japan’s top currency official, Atsushi Mimura, said the government remains on high alert as it monitors the foreign exchange (FX) market. Fed Governor Stephen Miran said on Monday that a weaker USD isn’t much of an issue for the central bank right now. “I don't view it as something that sort of had material consequences for monetary policy thus far,” he said. Traders await the release of the US Retail Sales data later on Tuesday for fresh impetus. On Wednesday, the attention will shift to the delayed employment report for January. Markets expect Nonfarm Payrolls (NFP) to increase by 70,000 in January, with the Unemployment Rate holding at 4.4%. Any signs of improvement in the US labour market could help limit the Greenback’s losses in the near term.  Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}GBP/USD gained another 0.55% on Monday, extending into a firm two-day recovery.Key trouble spots remain for Cable bulls, and key US labor data looms large in the midweek.GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average (EMA) at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300. However, the pair pulled back sharply from its January high of 1.3869 after the Bank of England (BoE) held rates at 3.75% in a dovish 5-4 vote split, with four Monetary Policy Committee members pushing for an immediate 25 basis point cut. Monday's session saw a modest recovery, with price bouncing from Friday's close near 1.3600 to trade around 1.3695, forming a bullish daily candle that reclaimed ground above the 1.3690 level. This area aligns roughly with the late-January consolidation zone between 1.3690 and 1.3770 that previously acted as support before last week's breakdown. UK political uncertainty surrounding Prime Minister Starmer's leadership is adding a headwind, but the broader trend of higher highs and higher lows on the daily timeframe still holds above the 50 EMA.Tuesday's session carries significant event risk from US Retail Sales (Dec) and the Employment Cost Index (Q4), both due at 05:30 GMT, followed by Federal Reserve (Fed) speeches from Hammack and Logan. The Stochastic Oscillator (14, 5, 5) on the daily chart remains tepid in neutral territory after unwinding from overbought conditions, suggesting room for further upside if momentum builds. A sustained push above the 1.3700 handle on Tuesday would target the broken support turned resistance near 1.3770, with a stronger move opening the path toward 1.3870 (the January swing high). On the downside, weaker-than-expected US data could initially support Pound Sterling, but a surprise beat in Retail Sales or hawkish Fed commentary may drive a retest of the 1.3590 low printed last week, with deeper support at the 50 EMA near 1.3507. The 1.3690-1.3700 zone is the near-term pivot; how price reacts here heading into the US data releases will set the tone for the rest of the week.Economic data releases on Tuesday:
GBP/USD daily chart
Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

Danske Bank analysts note that China’s January PMIs diverged, with the official NBS manufacturing index slipping below 50 while the private RatingDog measure rose above 50. The difference stems mainly from export orders. Overall, the bank still sees China muddling through a two-speed economy, with strong exports and technology offset by persistently weak domestic demand.Exports strong as domestic demand lags"In China, the January PMIs were a mixed bag.""The official NBS PMI manufacturing dropped 49.3 (consensus 50.1) from 50.1 whereas the private RatingDog PMI manufacturing increased to 50.3 (consensus 50.0) from 50.1.""However, the PMIs do not change the picture of a Chinese economy that continues to muddle through in a two-speed fashion with strong exports and tech developments amid weak domestic demand."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}NZD/USD posted a second straight market day of firm gains to shrug off a bearish downturn.Plenty of bearish headwinds could hamper bullish Kiwi momentum.The daily chart shows NZD/USD completing a broad base-building process after bottoming at 0.5580 in late October 2025, with price now trading at 0.6053, above both the 50 Exponential Moving Average (EMA) at 0.5867 and the 200 EMA at 0.5849. The recovery from the October low produced a higher-low sequence through November and December, with the pair breaking above the 0.5850 resistance zone (a level that capped rallies for much of August and September) in late December and accelerating into January. A strong impulse leg in late January pushed NZD/USD to a high of 0.6121, its best level since mid-July 2025, before sellers stepped in and forced a pullback last week as mixed New Zealand employment data cooled expectations for a near-term rate hike from the Reserve Bank of New Zealand (RBNZ). The unemployment rate climbed to 5.4% in Q4, a decade high, even as employment growth of 0.5% beat forecasts, prompting markets to push back the expected timing of a hike from September to October. The RBNZ is holding its Official Cash Rate (OCR) at 2.25% after an aggressive easing cycle, and its first policy meeting under new Governor Anna Breman on February 18 will be closely watched for any shift in forward guidance.Monday's session saw the pair open at 0.6013 and rally 0.57% to close at 0.6053, with the daily high at 0.6061 and a low of 0.5997, as broad US Dollar weakness supported risk-sensitive currencies. The bullish candle confirmed a bounce off the 0.5950 to 0.6000 support zone, which aligns with previous resistance from mid-January now acting as a floor. The Stochastic Oscillator (14, 5, 5) reads 77.37/80.04, pushing into overbought territory and suggesting near-term upside momentum could face resistance soon. Immediate resistance sits at 0.6100 to 0.6121, the January high, where sellers previously appeared on the daily chart with a long upper wick rejection candle. A daily close above 0.6121 would clear that barrier and target the July 2025 highs near 0.6150. On the downside, the 0.5950 area serves as first support, with the converging 50 and 200 EMAs around 0.5850 to 0.5870 providing a stronger structural floor. The golden cross forming between these two moving averages adds a bullish structural signal, though with the RBNZ meeting just nine days away and January's delayed US Nonfarm Payrolls (NFP) data due Wednesday, two-way volatility is likely to increase as the week progresses.NZD/USD daily chart
New Zealand Dollar FAQs What key factors drive the New Zealand Dollar? The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD. How do decisions of the RBNZ impact the New Zealand Dollar? The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair. How does economic data influence the value of the New Zealand Dollar? Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate. How does broader risk sentiment impact the New Zealand Dollar? The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Spot Gold prices are back on the high side of $5,000 after a fresh bullish push on Monday.Despite a sharp recovery, XAU/USD remains steeply off of record highs posted in January.The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month. That sell-off, driven by a wave of margin liquidations and a spillover from the silver market, found a floor near the 50 Exponential Moving Average (EMA) at $4,621.62 before buyers stepped back in aggressively. The 200 EMA sits far below at $3,945.10, underscoring the sheer distance Gold has traveled from its long-term mean. Monday's session opened at $4,984.06 and rallied +2.13% to close at $5,058.98, with the day's high reaching $5,086.75 and the low printing $4,964.96. The bullish daily candle reclaimed the $5,000 psychological level convincingly, a key threshold the market lost during last week's volatility. The broader forces pushing Gold higher remain firmly in place: the People's Bank of China (PBoC) extended its buying streak to a 15th consecutive month in January; the Federal Reserve (Fed) is holding rates at 3.50% to 3.75% with markets pricing further cuts later this year amid a softening US labor market (December payrolls came in at just 50K); and Wells Fargo raised its year-end target to $6,100 to $6,300 on February 4, joining JPMorgan at $6,300 and UBS at $6,200 in signaling further upside. US Dollar weakness, concerns about Fed independence following the Kevin Warsh nomination, and ongoing US-Iran geopolitical tensions are adding to the safe-haven bid.The Stochastic Oscillator (14, 5, 5) on the daily chart reads 45.09/43.57, sitting near the midline after bouncing sharply off the oversold zone during last week's sell-off. This neutral positioning gives the oscillator room to turn higher without the overbought conditions that preceded the January 29 blow-off top. Monday's price action formed a strong bullish candle body with small wicks on both sides, suggesting genuine buying conviction rather than short-covering. Immediate resistance sits at $5,100, followed by the $5,200 area where sellers capped rallies in late January before the final spike to the all-time high. A sustained move above $5,200 would open the path toward $5,400, the prior swing high zone. On the downside, the $5,000 round number now serves as first support, with stronger demand expected in the $4,800 area where price consolidated briefly during the recent correction. A break below $4,800 would expose the 50 EMA near $4,620 as the next structural floor. With central bank accumulation providing a durable bid, a weakening US Dollar, and institutional price targets clustering above $6,000, the technical recovery from the late-January liquidation flush appears to have legs, though Wednesday's release of the delayed US Nonfarm Payrolls (NFP) report for January could inject fresh volatility depending on whether inflation continues to run above the Fed's 2% target.XAU/USD daily chart
Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Bank of England (BoE) policymaker Catherine Mann said on Monday that US tariffs are feeding into higher UK inflation through Chinese export pricing.Key quotesUS tariffs are feeding into higher UK inflation via Chinese export pricing.

Not much trade diversion from China to the UK.

Import prices are a positive contribution to UK CPI.

Brexit continues to be a drag on the UK's economy.

I worry about sluggishness in spending and productivity.Market reactionAs of writing, the USD/JPY pair is up 0.56% on the day at 1.3695. BoE FAQs What does the Bank of England do and how does it impact the Pound? The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve ‘price stability’, or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP). How does the Bank of England’s monetary policy influence Sterling? When inflation is above the Bank of England’s target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects – a negative for the Pound Sterling. What is Quantitative Easing (QE) and how does it affect the Pound? In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets – usually government or AAA-rated corporate bonds – from banks and other financial institutions. QE usually results in a weaker Pound Sterling. What is Quantitative tightening (QT) and how does it affect the Pound Sterling? Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}AUD/USD touched three-year highs on Monday, inches away from 0.7100.The Australian Dollar is catching a double boost from rising RBA rate expectations and a soft Greenback.AUD/USD is trading near three-year highs after a strong break above the 0.7000 psychological level for the first time since February 2023, supported by the Reserve Bank of Australia's (RBA) surprise 25 basis point rate hike to 3.85% at its February meeting. The daily chart shows the pair in a well-defined uptrend, holding above both the 50-day Exponential Moving Average (EMA) near 0.6970 and the 200-day EMA around 0.6700. Price hit a high of 0.7094 on January 29 before pulling back to the 0.6960 area late last week as risk-off flows and a tech-led equity sell-off pressured the commodity-linked Australian Dollar. Monday's session saw buyers step back in, pushing AUD/USD up roughly 1% to trade around 0.7070 to 0.7085 on renewed US Dollar weakness, as the Federal Reserve (Fed) rate cut narrative gained traction with markets pricing two more cuts in 2026. The broader structure favors buyers while the pair holds above the 0.7000 round number on a daily closing basis.On the 1-hour chart, Monday's rally from the 0.7010 area produced a clean bullish impulse, with price breaking above the 50 EMA and the 200 EMA on the lower timeframe. An ascending channel from the February 2 low near 0.6958 is guiding the advance, with intraday resistance at the upper channel boundary near 0.7090 to 0.7100. The Stochastic Oscillator is pushing toward overbought territory on the 1H, suggesting the pair could consolidate before another leg higher. Near-term support sits at the channel floor around 0.7030, with the 0.7000 level acting as a stronger structural base. A daily close back above 0.7094 would clear the January 29 high and open the door toward 0.7128 and the 0.7200 handle. Looking ahead, Tuesday brings the Westpac Consumer Sentiment Index for February at 16:30 GMT and the NAB Business Confidence survey for January; both will provide further color on the domestic backdrop following the RBA's hawkish pivot, with markets pricing an 80% probability of another rate hike in May. On the US side, Tuesday's calendar is relatively light ahead of Wednesday's high-impact Consumer Price Index (CPI) release and delayed Nonfarm Payrolls (NFP) for January, though several Fed governor speeches are scheduled throughout the week and could inject volatility if they push back on rate cut expectations.Economic data coming up on Tuesday:AUD/USD daily chart
Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}GBP/JPY slips as political uncertainty around Keir Starmer weighs on Pound sentiment.Bulls stall near 214.00 after repeated failures to push toward yearly highs above 215.00.RSI prints lower highs, signaling fading momentum and rising downside risk toward key moving averages.The Pound Sterling retreats 0.21% during the North American session as political turmoil in the UK, surrounding the Prime Minister Keir Starmer, pushed the GBP/JPY downwards. At the time of writing, the cross-pair trades at 213.51 after reaching a daily high of 214.44.GBP/JPY Price Forecast: Technical outlookDuring the last four trading days, the GBP/JPY achieved successive daily highs near 213.80, with the pair unable to crack decisively the 214.00 figure. At the same time, the pair dipped to a five-day low of 211.61, before resuming upwards but so far bulls lacked the strength to break to new yearly highs past the current one at 215.00. A breach of the latter will expose the 215.50 figure, followed by 216.00.From a momentum standpoint, the Relative Strength Index (RSI) recorded successive series of lower highs, an indication that sellers are gathering momentum.If the GBP/JPY drops below 213.00, the immediate support would be the 20-day Simple Moving Average (SMA) at 212.57. Once surpassed the next stop would be the 50-day SMA at 210.80.GBP/JPY Daily ChartGBP/JPY Daily Chart Japanese Yen Price This week The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the strongest against the British Pound. USD EUR GBP JPY CAD AUD NZD CHF USD 0.02% 0.00% 0.00% -0.00% -0.01% -0.01% 0.02% EUR -0.02% 0.00% -0.04% -0.03% -0.02% -0.01% 0.02% GBP -0.01% -0.00% -0.04% -0.04% -0.01% -0.01% 0.01% JPY 0.00% 0.04% 0.04% 0.00% -0.01% -0.01% 0.03% CAD 0.00% 0.03% 0.04% -0.00% -0.00% 0.00% 0.03% AUD 0.01% 0.02% 0.01% 0.00% 0.00% 0.00% 0.08% NZD 0.01% 0.00% 0.00% 0.00% -0.00% -0.01% 0.02% CHF -0.02% -0.02% -0.01% -0.03% -0.03% -0.08% -0.02% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

HSBC analysts note that Indian equities and the Rupee lagged the recent emerging market rally but may be at a turning point. Progress on a US‑India trade deal, following an EU agreement, has boosted stocks and sentiment. Fiscal discipline, infrastructure spending, elevated real yields and an undervalued Rupee are seen as reinforcing India’s positive investment outlook.Trade progress, bonds and FX appeal"India’s stocks missed out on the recent rally in emerging markets, and the rupee has also taken a hit.""Both might now be at a turning point.""News that a US-India trade deal is in the works – with US tariffs set to fall to 18% – has sparked a surge in India’s stocks.""And the good news for international investors is that an undervalued rupee provides scope for positive FX returns.""For fixed income assets, downward pressure on inflation should keep real yields elevated, enhancing the global appeal of Indian government bonds."(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)