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AI-Enhanced Forex News Archive

Professional trading insights from Wednesday, February 4, 2026

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News Statistics for Wednesday, February 4, 2026

12
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4
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4
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Archive date: Wednesday, February 4, 2026

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Forexlive

USD Under Pressure: White House Housing Plan Doubts Weigh on Dollar

The US dollar faces downward pressure as uncertainty surrounds White House housing policy initiatives, with markets questioning the administration's ability to address the housing crisis effectively. The reported plan involving rent-to-own schemes for tenants has been dismissed by officials, highlighting policy paralysis in tackling housing affordability. With Kevin Warsh potentially heading the Fed, the prospect of quantitative easing to support housing markets appears increasingly remote, removing a potential dollar-supportive monetary tool. The lack of concrete housing solutions could weigh on consumer confidence and spending, potentially dampening economic growth prospects. Technical indicators suggest the DXY (Dollar Index) may test support at 106.50 if housing concerns persist. Traders are monitoring upcoming housing starts and building permits data for further directional cues, with a break below current support levels potentially accelerating dollar weakness against major currencies.
DXY EURUSD GBPUSD USDJPY
Sentiment: Negative
Source: Finnhub
investing.com

USD Bulls Eye Fresh Highs: Strong Data Could Fuel Dollar Rally

The US dollar index (DXY) is positioned for a potential breakout higher as traders anticipate key economic data releases that could trigger renewed bullish momentum. Current technical analysis shows the DXY consolidating near 107.00, with immediate resistance at 107.50 and strong support established at 106.80. Upcoming US economic indicators, particularly inflation metrics and employment figures, are expected to provide the catalyst for the next significant move. Strong data prints would reinforce expectations of sustained Federal Reserve hawkishness, potentially pushing the dollar toward the 108.00 psychological level. EUR/USD remains vulnerable below 1.0800, while USD/JPY eyes a push above 150.00 if dollar strength materializes. Market positioning data reveals growing long dollar positions among institutional traders, suggesting confidence in continued USD appreciation. A decisive break above recent highs could accelerate momentum trades across major pairs.
DXY EURUSD USDJPY GBPUSD
Sentiment: Very Positive
Source: Marketaux
Forexlive

EUR/USD pressured as Spain services PMI disappoints at 53.5

EUR/USD faced downward pressure following Spain's January services PMI release, which came in at 53.5, significantly below the expected 56.6 and down from December's 57.1. The disappointing data marks the weakest new business growth since June last year, attributed to sluggish demand conditions across Spain's service sector. While the reading remains above the 50-level indicating expansion, the sharp deceleration raises concerns about eurozone economic momentum. The miss adds to existing euro weakness, with traders now closely monitoring upcoming eurozone-wide PMI data for confirmation of broader slowdown. Despite the headline disappointment, employment growth remained positive and business confidence improved, providing some support. Technical levels show EUR/USD testing support near 1.0780, with resistance at 1.0820. Further eurozone data weakness could accelerate euro selling, while any positive surprises might offer relief rallies.
EURUSD
Sentiment: Negative
Source: Finnhub
investing.com

GBP/USD maintains bullish trend despite retreat from 1.2650 highs

GBP/USD has pulled back 0.4% to 1.2580 after reaching recent highs near 1.2650, though the broader bullish structure remains intact. The pair's upward momentum has been supported by expectations of a more hawkish Bank of England stance amid persistent UK inflation concerns, contrasting with growing speculation of Federal Reserve rate cuts later in 2024. Technical indicators suggest the pullback may be a healthy correction within the uptrend, with the 50-day moving average at 1.2520 providing key support. Strong resistance emerged at 1.2650, coinciding with December 2023 highs. Bulls remain in control above 1.2500, with a break above 1.2650 potentially opening the path toward 1.2700. However, traders should monitor upcoming UK GDP data and US employment figures, which could trigger volatility and test the pair's resilience.
GBPUSD
Sentiment: Positive
Source: Marketaux
investing.com

NZD/USD drops 0.8% as New Zealand unemployment surges to 4.3%

NZD/USD has declined sharply by 0.8% to 0.6120 following New Zealand's unemployment data showing a significant rise to 4.3% from the previous 3.9%, exceeding market expectations of 4.1%. The weak labor market data reinforces expectations that the Reserve Bank of New Zealand (RBNZ) may need to pivot toward rate cuts sooner than anticipated, undermining the kiwi dollar's appeal. The employment change also disappointed, showing only 0.4% growth versus 1.0% expected. Technical analysis shows NZD/USD breaking below the key 0.6150 support level, with further downside potential toward 0.6080 if selling pressure persists. The 200-day moving average at 0.6180 now acts as resistance. Market participants are pricing in increased odds of RBNZ rate cuts by mid-2024, which could maintain pressure on the New Zealand dollar against its major counterparts.
NZDUSD
Sentiment: Very Negative
Source: Marketaux
Forexlive

USD/JPY breaks above 156 as BoJ policy expectations shift to gradual hikes

USD/JPY surged 0.5% to trade above 156.20 during Asian trading, marking a significant resistance breach as Bank of Japan rate hike expectations moderate. Japan's Services PMI jumped to an 11-month high of 53.8, signaling robust economic expansion despite Nomura's forecast of BoJ rates reaching only 1.5% by 2027. The dollar found additional support from steady Fed rate expectations, with markets maintaining current pricing despite speculation about potential Warsh appointment. China's Services PMI improvement to a three-month high and South Korea's won strength from pension fund dollar bond considerations added regional complexity. Technical indicators show USD/JPY breaking above the 156 psychological level with momentum indicators suggesting further upside potential. Immediate resistance sits at 156.50, while support has formed at 155.80. Traders should monitor upcoming BoJ communications for any hawkish surprises that could cap further yen weakness.
USDJPY USDCNY USDKRW
Sentiment: Very Positive
Source: Finnhub
europeanbusinessreview.com

USD/JPY outlook: BOJ policy and intervention risks shape next moves

USD/JPY remains at a critical juncture as multiple factors converge to influence the pair's direction. Bank of Japan monetary policy decisions continue to be the primary driver, with markets closely watching for any shifts from the ultra-accommodative stance. Japanese authorities have intensified verbal warnings about potential intervention, particularly if rapid yen depreciation continues. Fiscal policy concerns in both countries add another layer of complexity, with US debt ceiling debates and Japan's fiscal sustainability under scrutiny. Global risk sentiment fluctuations significantly impact the pair, as JPY typically strengthens during risk-off episodes. Technical analysis suggests key resistance near 150.00, a psychologically important level that previously triggered intervention threats. Support lies around 147.50, coinciding with the 50-day moving average. Traders should monitor BOJ communications, US Treasury yields, and any signs of actual intervention as these could trigger substantial volatility in USD/JPY positioning.
USDJPY
Sentiment: Neutral
Source: Marketaux
Forexlive

USD/CNY falls as China services PMI hits 3-month high at 52.3

USD/CNY declined 0.2% to 7.2450 following China's stronger-than-expected services PMI data for January. The Services Business Activity Index rose to 52.3 from December's 52.0, marking a three-month high and indicating robust expansion in the services sector. The improvement was driven by accelerating new orders and a notable return to growth in export-related business, suggesting strengthening domestic and international demand. This broad-based acceleration supports the yuan as China's economic recovery gains momentum beyond manufacturing. Technical indicators show USD/CNY testing support at 7.2400, with the 50-day moving average at 7.2350 providing the next key level. A sustained break below could target 7.2200. The positive PMI data reinforces expectations that China's economy is stabilizing, potentially attracting foreign capital inflows and supporting further yuan appreciation against the dollar in the near term.
USDCNY
Sentiment: Negative
Source: Finnhub
seekingalpha.com

AUD/USD surges 0.8% as RBA delivers surprise 25bp rate hike

AUD/USD jumped 0.8% to 0.6580 after the Reserve Bank of Australia unexpectedly raised interest rates by 25 basis points, ending a two-year pause. The hawkish move caught markets off-guard, with only 30% of economists predicting a hike. The RBA cited persistent inflation concerns and tight labor market conditions as key factors driving the decision. Governor's accompanying statement suggested further tightening may be necessary if inflation remains elevated. The rate differential with the US Federal Reserve has narrowed significantly, providing strong support for the Australian dollar. Technical analysis shows AUD/USD breaking above the 0.6550 resistance level, with momentum indicators turning bullish. The next resistance lies at 0.6620 (November 2023 high), while support has formed at 0.6530. Traders are positioning for potential follow-through gains, with the pair likely to test 0.6650 if the bullish momentum continues.
AUDUSD
Sentiment: Very Positive
Source: Marketaux

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