Z Forex
Established member
- Messages
- 792
- Likes
- 1
Daily Analysis by zForex Research Team - 07.02.2025
Euro Climbs as Trump and Powell Drive VolatilityMarkets stayed cautious midweek as the U.S. dollar continued to weaken due to fiscal worries, political pressure on the Fed, and anticipation ahead of the jobs report.
The euro traded near $1.1790, supported by expectations of Fed rate cuts. The pound rose to $1.3740 on firm signals from the BoE, while gold stayed above $3,330 amid debt concerns. The yen slipped slightly after new trade threats from Trump, and silver held steady around $36 as investors waited for key labor data.
GBP/USD Analysis by zForex Research Team - 07.02.2025
BoE Hawkish Tone Supports GBPThe British pound rose to $1.374, as the U.S. dollar weakness continued to support sterling. Market sentiment remained cautious before Thursday’s U.S. payrolls report.
Growing concerns over the inflationary impact of Trump’s $3.3 trillion tax-and-spending bill and political pressure on the Fed eased investor confidence in the dollar, allowing GBP/USD to build on recent gains. The pound also benefited from Bank of England Governor Andrew Bailey’s comments suggesting inflation pressures persist and that policy remains restrictive for now, giving GBP/USD relative support against the dollar.
Resistance is seen at 1.3760, while support holds at 1.3620.
Gold Analysis by zForex Research Team - 07.02.2025
Fed Caution Keeps Gold ElevatedGold held above $3,330 per ounce with the gains of over 1% from the day before, as a weaker U.S. dollar supported prices. The Senate's approval of Trump’s massive tax-and-spending package, expected to increase national debt by $3.3 trillion, added to these concerns.
Powell stressed a patient stance on rate cuts but didn’t rule out action this month, while Treasury Secretary Scott Bessent predicted cuts by September. Markets are now focused on upcoming U.S. labor data, especially Thursday’s payroll report, for direction on the Fed’s next moves. However, fading geopolitical risks slightly softened the gold demand, as Trump announced a 60-day Gaza ceasefire agreement with Israel and issued a warning to Hamas.
Resistance is at $3,350, while support holds at $3,300.