Euro Weakens Against Dollar as US Economy Booms

• Euro falls to two-month low: The euro dropped below 1.08 against the dollar due to a strong US economy and expectations of delayed rate cuts by the Federal Reserve.
• Red-hot US jobs report: The US added a staggering 353,000 jobs in January, far exceeding forecasts and boosting the dollar.
• Fed rate cuts on hold: Hopes for a March rate cut by the Fed faded after the jobs data, pushing investors towards the dollar.
• Eurozone struggles: Eurozone PMIs point to contraction, indicating a weaker economy compared to the US.
• ECB cautious on rate cuts: Despite falling inflation, the ECB remains concerned about upside risks and may delay rate cuts.

Australian Dollar Slides on US Dollar Strength

• Aussie falls to lowest level since mid-November: The Australian dollar weakened against the greenback after the US jobs report.
• RBA expected to hold rates: The Reserve Bank of Australia is likely to keep rates steady despite falling inflation and retail sales.
• Rate cut bets pushed back: Markets now expect the RBA to wait until later this year to cut rates.

Canadian Dollar Awaits US Jobs Data

• Canadian dollar stable before key US data: The Canadian dollar awaits the US nonfarm payrolls report for direction.
• Strong US data could delay BoC rate cuts: A robust US economy could reduce pressure on the Bank of Canada to lower rates.
• BoC likely to follow the Fed: The BoC is expected to cut rates after the Fed does so.

Japanese Yen Extends Losses After US Jobs Data

• Yen weakens further against the dollar: The yen fell after the US jobs report, extending its recent losses.
• BoJ eyes exit from negative rates: Strong economic data in Japan could prompt the Bank of Japan to end its ultra-loose monetary policy.
• Policy shift could lift the yen: A change in BoJ policy would likely strengthen the Japanese currency.

Key Upcoming Events:

• Japan: Wage growth and household spending data (February 6)
• Australia: RBA monetary policy meeting (February 6)
• US: Nonfarm payrolls report (February 2)

Technical Analysis:

• EUR/USD: Faces resistance at 1.0822 and 1.0864, with support at 1.0747 and 1.0705.
• AUD/USD: Faces resistance at 0.6541 and 0.6581, with support at 0.6473 and 0.6433.
• USD/CAD: Faces resistance at 1.3400 and 1.3467, with support at 1.3349 and 1.3310.
• USD/JPY: Faces resistance at 149.22 and 150.08, with support at 147.73 and 146.87.