Dollar Stumbles; Risk & Data in Focus
The US Dollar Index (DXY) weakened slightly at the start of the European session on Friday (February 6th) after touching a two-week high around 98 on Thursday. This movement occurred as the market entered a "wait-and-see" mode, awaiting the release of Michigan Consumer Sentiment (preliminary February) tonight WIB, plus central bank comments that could change interest rate expectations. The DXY was last seen in the 97.77–97.85 range.
Risk-off sentiment remains. Wall Street fell more than 1% overnight, supporting the dollar as investors sought safe assets. However, this morning, US stock index futures continued to fall (around 0.2%–0.5%), indicating the market remains on the defensive. Data-wise, US JOLTS job openings fell to 6.54 million (weaker than the expected 7.2 million), further increasing market sensitivity regarding the direction of the economy.
In Europe, the ECB held interest rates steady as expected. Christine Lagarde hinted that a stronger euro could push inflation higher than expected (although the ECB emphasized it doesn't target the exchange rate). As a result, EUR/USD was briefly depressed, then stabilized. It is currently trading around 1.178–1.180.
In the UK, the Bank of England (BoE) held interest rates at 3.75% in a tight vote, and comments about disinflation have led the market to view the future interest rate path as increasingly tricky. The pound took a hit, then began consolidating. GBP/USD is now around 1.356 (daily range approximately 1.3509–1.3579).
In Canada, market attention is focused on January's employment data. Expectations are for the unemployment rate to remain at 6.8% and net employment to increase by around 7,000 (as per the narrative). Ahead of the release, USD/CAD is moving in the 1.367–1.371 range, having strengthened on Thursday.
Meanwhile, in Japan, USD/JPY is still consolidating, with investors tending to hold large positions ahead of the weekend's elections. USD/JPY was last around 156.86 with a daily range of roughly 156.53–157.07.
Source: Newsmaker.id
