FX markets

Daily Market View 02-02-2026

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1:24

Dollar Rally Slows, but DXY Manages to Stay Resilient

1 Minute Market Rundown

Markets are still reacting to Trump’s nomination of Kevin Warsh to replace Powell as Fed Chair ahead of May.
Warsh seems supportive of a "steepening" trade, with markets pricing in slightly higher odds of rate cuts.
Plenty of data this week, with the BoE rate decision on February 5 and US Non-Farm Payrolls on Friday.

USD-

After an usually quiet Trump over the weekend, the market is in much the same mode as it was on Friday, sell metals, sell equities and buy Dollar. Kevin Warsh is still seen as the most reliable choice that would satisfy most people, despite being nobodies favourite.

Screenshot 2026-02-02 073827

Warsh's term will only begin forward of May, with the June 17th Fed meeting being his first. This gives the market plenty of time to adjust to any comments made by the incoming Chairman ahead of time.

The BoE's decision on Thursday is more likely to be a non-event, with higher inflation keeping the bank resistant to any further cuts. The total lack of UK releases otherwise set this up to be likely sleepy week.

Markets Today

*Please be aware the below rates represent the market rate at 8:00 AM, contact your Caxton dealer or check online for a live quote.

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