FOREX TODAY: US JOB REPORT WILL CONTINUE TO CAUSE VOLATILITY BEFORE THE WEEKEND

What you need know on Friday, February 2 is as follows:

In the American session on Thursday, the US Dollar (USD) saw strong selling, USD Index fell and US bond yields decreased. Early on Friday, they turn to the US January jobs report, which will include data on wage inflation and nonfarm payrolls. The Consumer Sentiment Index data for January will be revised by the University of Michigan, while the December Factory Orders will be published by the Census Bureau.

NFP Preview: New Year, Same Old Labor Market, Forecasts from Ten Big Banks.

On Thursday's lackluster jobless figures, the US 10-year Treasury bonds fell to around 3.9%, the lowest since late December. For the week ending January 27, Weekly Initial Jobless Claims exceeded market expectations, and the ISM Manufacturing PMI survey's Employment Index decreased slightly to 47.1 in January from 47.5 in December.

In the US, nonfarm payrolls are expected to increase by 180,000 in January. The average hourly wage is predicted to increase by 0.3% every month, while the unemployment rate is predicted to slightly increase to 3.8%.

NFP Forecast: The US nonfarm payrolls is expected to increase in January.

US dollar exchange rate for this week

The US dollar's (USD) percentage movement compared to a list of major currencies for this week is displayed in the table below. In relation to the Japanese Yen, the US dollar was the weakest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box. (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

Bank of England (BoE) kept it at 5.25% and lowered its 2024 inflation estimate. Governor Andrew Bailey of the Bank of England did the news conference held after that a policy pivot would occur. Despite a slight decline in the early response, USD weakness ended Thursday's trading session over 1.2700. The pair trades at a 1.2750 in the early hours of Friday.

On Thursday, it saw losses for the second day in a row. Around 146.50 is where it will be on Friday morning in Europe.

Following a dip below 1.0780, the almost seven weeks, EUR/USD turned around and rose above 1.0850. Towards 1.0900, the pair keeps moving in early European session.

In the second part of the day on Thursday, gold gained bullish momentum and surged past $2,060, the highest level since early January. Ahead of the US jobs data, XAU/USD continues its consolidation phase, just below $2,060.