FxAnalysis

Finally, the recent steep leg lower in the US Dollar (USD) has found some respite.

The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.

The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.

After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.

The Japanese Yen (JPY) trades in an environment where the country’s politics has once again become a direct driver of the currency.

Despite short-term exhaustion, USD/JPY remains in a strong uptrend, with interest rate differentials favoring buyers on pullbacks toward key support zones.