Forex News
Despite the weakened Danish Krone (DKK) against the Euro (EUR), the Danish central bank has not intervened in the foreign exchange market, indicating that the current interest rate spread will likely remain unchanged. The Krone has shown slight appreciation recently, but the longest period without intervention since the Euro's introduction continues. Nordea analysts suggest that a seasonal weakening could occur as dividend payments increase in the coming months.
No intervention from the Danish central bank
"Despite a weakened Danish krone against the euro, the Danish central bank has not yet intervened in the foreign exchange market. This supports our expectation that the current interest rate spread will be kept unchanged."
"Since the peak in EUR/DKK in mid-January the Danish krone has appreciated slightly and is currently trading around 7.456 against the euro. Due to this, it is most likely that the record long period without intervention is still going on."
"When the Danish krone weakens toward previous intervention levels, the risk of an independent Danish rate hike increases and the DESTR-€STR spread widens."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- GBP/USD consolidates below 1.3700 as traders await the Bank of England policy decision.
- US services data surprised higher, with the Institute for Supply Management PMI beating forecasts despite softer hiring signals.
- UK services activity improved, but rising prices flagged by S&P Global may limit near-term BoE easing.
The Pound Sterling (GBP) drops against the US Dollar (USD) on Wednesday, and it remains trading below the 1.3700 figure, posting losses of 0.23% as traders wait for the Bank of England’s (BoE) monetary policy decision.
Sterling weakens as mixed risk sentiment and resilient US services data keep the Dollar modestly supported
Market mood is mixed as investors rotate out of tech companies, amid the uncertainty about the business risks of AI. In the meantime, a short-lived government shutdown in the US delayed the release of the US Nonfarm Payrolls report for January and other labor market data.
Consequently, traders got back to other data, such as the ADP Employment Change for January, which revealed that private companies hired 22K people, missing estimates of 48K jobs created in the first month of 2026.
In the meantime, the Institute for Supply Management revealed that the Services Purchasing Managers Index (PMI) for January exceeded estimates of 53.5, rose by 53.8, unchanged from December’s reading.
Digging deeper into the data, the Employment index expanded for the second straight month but decelerated compared to December’s print. The Prices Paid sub-component rose from 65.1 in December to 66.6, its highest level sincd the previous two months.
Following the ISM’s release, the Greenback mildly advanced as depicted by the US Dollar Index (DXY). The DXY, which tracks the buck’s performance versus six currencies, is up 0.13% at 97.51.
Across the pond, S&P Global revealed that business activity in the services sector grew strongly in January. The same polls showed an increase in prices, which could deter the BoE from cutting rates.
On Thursday, the BoE is expected to hold rates unchanged at 3.75%. However, towards the year’s end, money markets had priced in 35 basis points of easing, revealed Prime Market Terminal data.
GBP/USD Price Forecast: Technical outlook
The GBP/USD technical picture shows the pair is poised to consolidate within the 1.3600-1.3700 range, after retreating from a yearly high of 1.3868 hit on January 27. The selling pressure has eased as shown by the Relative Strength Index (RSI), which remains at bullish territory, but stabilized after diving from around the 78.45 level.
For a bullish continuation, GBP/USD must reclaim 1.3700. A breach of the latter will expose 1.3750, followed by the January 30 high at 1.3818. Conversely, if GBP/USD falls below 1.3650, it would open the door to test the February 2 low at 1.3623 ahead of 1.3600.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | 0.18% | 0.58% | 0.25% | 0.21% | 0.71% | 0.17% | |
| EUR | -0.14% | 0.03% | 0.44% | 0.11% | 0.06% | 0.58% | 0.03% | |
| GBP | -0.18% | -0.03% | 0.47% | 0.08% | 0.03% | 0.55% | 0.00% | |
| JPY | -0.58% | -0.44% | -0.47% | -0.31% | -0.36% | 0.15% | -0.39% | |
| CAD | -0.25% | -0.11% | -0.08% | 0.31% | -0.05% | 0.47% | -0.08% | |
| AUD | -0.21% | -0.06% | -0.03% | 0.36% | 0.05% | 0.53% | -0.03% | |
| NZD | -0.71% | -0.58% | -0.55% | -0.15% | -0.47% | -0.53% | -0.54% | |
| CHF | -0.17% | -0.03% | -0.01% | 0.39% | 0.08% | 0.03% | 0.54% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
- Silver rises sharply and trades around $89.70, supported by renewed demand for safe-haven assets.
- Renewed tensions between the United States and Iran underpin demand for precious metals.
- Latest US macroeconomic data fuel expectations of an accommodative monetary policy.
Silver (XAG/USD) extends its rebound for a second consecutive day and trades around $89.70 at the time of writing, up 5.50% on the day. The white metal benefits from a supportive backdrop marked by renewed geopolitical tensions and mixed US macroeconomic indicators, which revive interest in assets considered safe havens.
Demand for Silver strengthens amid heightened tensions between the United States (US) and Iran, following military incidents reported in the Arabian Sea. This climate of geopolitical uncertainty prompts investors to scale back exposure to riskier assets and reallocate toward precious metals, including Silver, which is traditionally sought during periods of international stress.
The current rebound also reflects a catch-up move after the sharp correction seen recently, when Silver fell significantly from its record highs. That decline was notably triggered by the nomination of Kevin Warsh as Chairman of the Federal Reserve (Fed), a development initially perceived as supportive for the US Dollar (USD) given the former central banker’s reputation for a more restrictive policy stance.
On the macroeconomic front, the latest US data released on Wednesday provided indirect support to Silver. The Automatic Data Processing (ADP) report shows that private-sector job creation in the United States totaled just 22,000 in January, well below market expectations. This reading confirms a gradual cooling of the labor market, even as wage growth remains relatively stable. Meanwhile, the Institute for Supply Management (ISM) Services Purchasing Managers Index (PMI) held steady at 53.8, slightly above forecasts, though its Employment and New Orders components declined, pointing to some loss of economic momentum.
Against this backdrop, investors continue to expect the Federal Reserve to keep interest rates unchanged at its upcoming meetings, while leaving the door open to policy easing later in the year should economic conditions deteriorate further. These expectations cap the upside in the US Dollar and enhance the appeal of Silver, a non-yielding asset that tends to benefit from lower real rate prospects and heightened macroeconomic and geopolitical uncertainty.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
The Riksbank has decided to keep its policy rate unchanged at 1.75%, citing solid economic growth and rising household consumption. Despite a weak labor market, inflation has reached target levels, allowing the Riksbank to adopt a wait-and-see approach. Commerzbank FX Analyst Antje Praefcke emphasizes the bank's readiness to adjust monetary policy if necessary.
Riksbank's cautious stance on rates
"The Riksbank is vigilant with regard to developments and is prepared to adjust monetary policy if the outlook changes."
"In conclusion, as long as there are no major “ricochets,” i.e., exogenous shocks, and growth and inflation develop broadly as forecast, Sweden's policy rate will remain unchanged in the coming months."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- ISM Services PMI matches the previous print at 53.8 in January.
- The US Dollar keeps its slightly bullish stance on Wednesday.
Economic activity in the US service sector remained unchanged in January, with the ISM Services PMI holding steady at 53.8. The print, however, came in above analysts' expectations of 53.5.
Further poll results found that the Prices Paid Index, a crucial barometer of inflation, ticked higher to 66.6 from 65.1 (revised from 64.3), while the Employment Index receded to 50.3 from 51.7 (revised from 52.0), indicating a humble pullback in labour market conditions in the service sector. Finally, the New Orders Index weakened to 53.1 from 56.5 (revised from 57.9).
Market reaction
The Greenback remains slightly bid following the release, as investors continue to digest the latest ADP report. That said, the US Dollar Index (DXY) reverses
Tuesday’s losses and revisits the 97.50 region, maintaining the weekly recovery well in place.
Forex Market News
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