Here is what you need to know on Thursday, February 6:
The main currency pairs remain relatively calm early on Thursday as investors are preparing for the next major events. The Bank of England (Bank of England) will announce monetary policy decisions. Governor Andrew Billy will talk about a political outlook and a response to questions at a press conference after that. Later in the day, the American economic calendar will be distinguished by the demands of the unemployed and the employment costs for the unit for the fourth quarter.
US dollar price this week
The table below shows the percentage of change in the US dollar (USD) against the main currencies listed this week. The US dollar was the weakest against the Canadian dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -0.19 % | -64 % | -1.59 % | -2.31 % | -0.82 % | -16 % | -1.37 % | |
| euro | 0.19 % | -06 % | -11 % | -0.86 % | -18 % | 0.32 % | 0.10 % | |
| GBP | 0.64 % | 0.06 % | 1.14 % | -0.80 % | -11 % | 0.38 % | 0.16 % | |
| JPY | 1.59 % | 0.11 % | 1.14 % | -0.75 % | 0.92 % | 1.34 % | 0.85 % | |
| CAD | 2.31 % | 0.86 % | 0.80 % | 0.75 % | 0.43 % | 1.18 % | 0.97 % | |
| Aud | 0.82 % | 0.18 % | 0.11 % | -0.92 % | -0.43 % | 0.50 % | 0.28 % | |
| Nzd | 1.16 % | -0.32 % | -0.38 % | -1.34 % | -18 % | -0.50 % | -0.22 % | |
| Chf | 1.37 % | -0.10 % | -16 % | -0.85 % | -0.97 % | -0.28 % | 0.22 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage offered in the box will represent the USD (base)/JPY (quote).
the US dollar (USD) I struggle to find the request on Wednesday after the PMI data disappointing services. In addition, improving the risk mood puts additional weight on the shoulders of the currency, as the main indexes of Wall Street recorded the gains for the second day in a row. After a decrease of 0.4 % on Tuesday, the US dollar index lost more than 0.3 % on Wednesday.
US Treasury Secretary Scott Bessin said late on Wednesday that US President Donald Trump does not call for low interest rates. He added that the interest rates will take care of themselves if we decrease energy costs and receive the economy. “After it decreased by 2 % on Wednesday, the return will fluctuate for a period of 10 years in a narrow range exceeding 4.4 %.
The Bank of England is expected to reduce the policy price by 25 basis points to 4.5 % after the February Policy meeting. GBP/USD She touched its highest levels in nearly 1.2550 on Wednesday, but it spanned part of its daily gains in the late American session. The husband corrects less on Thursday and trading less than 1.2500.
Euro/dollars It was closed at the same marginal on Wednesday, but failed to settle over 1.0400. The last time was seen 0.2 % a day near 1.0380.
USD/JPY He decreased sharply and lost more than 1 % on Wednesday. After extending its segment to its weakest level since early December, less than 152.00 in the Asian session on Thursday, the husband regained his jar and turned a day, above 152.50.
gold She maintained her upward momentum on Wednesday and set a new record of $ 2882 during US trading hours. Xau/USD remains on the back foot early Thursday and decreases about 2850 dollars.
Stering questions and answers to the pound
The British pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most trading of foreign unit (FX) in the world, as it represents 12 % of all transactions, with an average of 630 billion dollars a day, according to 2022 data. Their main trading pairs are GBP/USD, also known as “Cable”, Which represents 11 % of FX, GBP/JPY, or “dragon” as is known by merchants (3 %), and EUR/GBP (2 GBP (2 %). The pound sterling was released by the Bank of England (Bank of England).
The only most important factor that affects the value of the British pound is the monetary policy decided by the Bank of England. The Bank of England is based on its decisions on whether it has achieved its primary goal of “stability in prices” – a fixed inflation rate of about 2 %. Its primary performance to achieve this is to adjust interest rates. When inflation is very high, the Bank of England will try to make interest by raising interest rates, making it more expensive for people and companies to reach credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to stop their money. When inflation decreases significantly, economic growth slows down. In this scenario, the Bank of England will consider reducing interest rates to licensing credit so that companies borrow more to invest in growth generation projects.
Data affects the health of the economy and can affect the value of the pound sterling. Indicators such as gross domestic product, manufacturing, services, and employment can affect the GBP direction. The strong economy is useful for sterling. Not only attracts more foreign investments, but it may encourage the Bank of England to set interest rates, which will enhance the GBP directly. Otherwise, if the economic data is weak, it is possible that the pound sterling will fall.
Issuing another important data for the British pound is the balance of trade. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very desirable exports, its currency will benefit from the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
