Markets buckled across several asset classes as concern over technology profits and weakness in commodities spurred losses in the stock market. Gold and silver tumbled as traders plowed money into the perceived safety of Treasuries, and the selloff in bitcoin deepened.
Check out the forex news and economic updates you may have missed in the latest trading session!
Forex News Headlines & Data:
- Japan PPI Growth Rate for January 2026: 0.2% m/m (0.2% m/m forecast; 0.1% m/m previous)
- Australia Consumer Inflation Expectations for February 2026: 5.0% (4.4% forecast; 4.6% previous)
- U.K. RICS House Price Balance for January 2026: -10.0% (-12.0% forecast; -14.0% previous)
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U.K. GDP for December 2025: 0.1% m/m (0.1% m/m forecast; 0.3% m/m previous); 0.7% y/y (1.3% y/y forecast; 1.4% y/y previous)
- U.K. Manufacturing Production for December 2025: -0.5% m/m (-0.3% m/m forecast; 2.1% m/m previous); 0.5% y/y (1.2% y/y forecast; 2.1% y/y previous)
- U.K. Industrial Production for December 2025: -0.9% m/m (-0.2% m/m forecast; 1.1% m/m previous); 0.5% y/y (1.6% y/y forecast; 2.3% y/y previous)
- U.K. NIESR Monthly GDP Tracker for January 2026: 0.3% (0.3% forecast; -0.1% previous)
- U.S. Initial Jobless Claims for February 7, 2026: 227.0k (225.0k forecast; 231.0k previous)
- U.S. Existing Home Sales for January 2026: -8.4% m/m (-3.4% m/m forecast; 5.1% m/m previous
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Broad Market Price Action:
Dollar Index, Gold, S&P 500, Oil, U.S. 10-yr Yield, Bitcoin Overlay – Chart Faster With TradingView
Thursday’s session delivered widespread risk-off sentiment as artificial intelligence disruption fears spread beyond software into logistics, commercial real estate, and insurance brokerage sectors, triggering sharp equity declines and robust Treasury bond demand.
The S&P 500 fell 1.60% to close at 6,831, extending losses for a third consecutive session as the AI-driven selloff broadened significantly. Cisco Systems plunged after warning that rising memory chip prices were pressuring margins, despite beating earnings expectations with record quarterly revenue of $15.3 billion. All megacap technology stocks declined as anxiety over AI infrastructure spending and disruption risk overshadowed otherwise solid corporate results. An ETF tracking software firms slumped 2.7%, while commercial real estate services companies tumbled on fears that AI productivity tools could reduce office space demand. CBRE Group sank 15% in its worst two-day decline since the 2008 financial crisis, while logistics stocks saw the Russell 3000 Trucking Index drop 10% with CH Robinson Worldwide plunging 24%.
WTI crude oil declined 2.82% to settle at $62.75 per barrel, tracking equity market weakness as concerns about economic growth and AI-driven efficiency gains weighed on demand expectations. The decline occurred despite no direct oil-specific catalysts, likely reflecting broader risk-off sentiment and positioning adjustments ahead of the weekend.
Gold tumbled 3.28% to $4,918 per ounce in its sharpest single-day drop since early February’s historic precious metals selloff. The precious metal had been trading near $5,060 during Asian and early London hours before accelerating lower through the US session, possibly reflecting profit-taking after gold’s sustained run above $5,000 and broad liquidations as capital flowed into U.S. Treasuries.
Bitcoin fell 3.30% to close at $65,521, extending recent cryptocurrency weakness as risk aversion spread across speculative assets. The digital currency traded lower throughout most of the session with no apparent direct crypto-specific catalysts, possibly reflecting concerns that traditional financial assets might benefit at crypto’s expense if Federal Reserve policy remains restrictive despite inflation pressures.
Treasury yields declined 1.72% with the 10-year note settling at 4.10%, as investors sought safety in government bonds amid the equity market turmoil. The yield drop came despite relatively stable economic data, suggesting flight-to-quality flows dominated. A $25 billion sale of 30-year bonds drew historic demand, with the auction clearing at a coupon rate of 4.750%, below the pre-sale when-issued yield of 4.771%. The strong auction results reflected robust institutional appetite for long-duration assets amid heightened market volatility.
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FX Market Behavior: U.S. Dollar vs. Majors
Overlay of USD vs. Majors – Chart Faster With TradingView
The U.S. dollar experienced choppy and mixed trading on Thursday, posting modest gains against most major currencies despite intraday volatility as traders navigated UK data releases and shifting risk sentiment around AI disruption concerns.
During the Asian session, the dollar dipped before rebounding to trade arguably slightly net positive heading into the morning London session. The move occurred with no significant regional economic catalysts, suggesting cautious positioning ahead of the UK data releases scheduled for early European hours.
The London session brought the dollar net lower against major currencies as UK economic data painted a picture of slowing growth but persistent inflation pressures. The UK GDP report for the fourth quarter came in at 0.1% q/q versus 0.2% expected, while manufacturing production declined 0.5% m/m versus the -0.3% forecast. Industrial production fell 0.9% m/m, significantly worse than the -0.2% expectation. The weaker-than-expected growth data initially weighed on sterling, though the impact on dollar direction appeared limited as traders assessed the implications for Bank of England policy alongside ongoing concerns about European economic momentum.
The U.S. session saw the dollar trade net higher against major currencies after an initial brief dip at the session open. The greenback’s strength accelerated during the mid-afternoon period, possibly correlating with the sharp equity market selloff as risk aversion intensified following the broadening AI disruption narrative to new sectors including commercial real estate and logistics.
At the Thursday close, the dollar closed mixed on a daily basis versus major currencies but with an arguably net positive lean. The dollar’s modest gains during a session characterized by significant equity market stress suggested that while safe-haven flows were evident, they were directed more toward Treasury bonds than the currency itself.
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Upcoming Potential Catalysts on the Economic Calendar
- New Zealand Visitor Arrivals for December 2025 at 9:45 pm GMT
- Fed Miran Speech at 12:05 am GMT
- China House Price Index for January 2026 at 1:30 am GMT
- New Zealand Business Inflation Expectations for March 31, 2026 at 2:30 am GMT
- Germany Wholesale Prices for January 2026 at 7:00 am GMT
- Swiss CPI Growth Rate for January 2026 at 7:30 am GMT
- Bank of Japan Tamura Speech at 8:30 am GMT
- China Monetary Developments for January 2026
- Euro area GDP Growth Rate 2nd Est for December 31, 2025 at 10:00 am GMT
- Euro area Employment Change Prel for December 31, 2025 at 10:00 am GMT
- Canada New Motor Vehicle Sales for December 2025 at 1:30 pm GMT
- U.S. CPI Growth Rate for January 2026 at 1:30 pm GMT
Friday’s calendar is dominated by the delayed January CPI report at 8:30 AM ET, which represents the most critical data release of the week and potentially a defining moment for Federal Reserve policy direction in early 2026. Markets are bracing for consensus estimates of 2.5% year-over-year headline inflation (down from 2.7% in December) and 0.3% month-over-month core CPI, with the report carrying outsized significance after Thursday’s equity market turmoil driven by AI disruption concerns.
The CPI release arrives just two days after the delayed January employment report and comes at a pivotal moment as the Federal Reserve weighs persistent above-target inflation against signs of labor market stabilization. Economists expect the report to show continued progress toward the Fed’s 2% target, though sticky shelter costs and potential early signals of tariff pass-through effects may complicate the picture. Core services inflation, particularly the shelter component which rose 0.4% in December, will be closely monitored as the Fed has indicated this metric remains crucial for determining the path of future rate cuts.
Market reactions could be amplified by Thursday’s AI-driven selloff, with traders watching whether a softer-than-expected inflation print might ease concerns about restrictive monetary policy constraining economic growth, or whether persistent price pressures will validate the Fed’s cautious stance and delay anticipated rate cuts beyond mid-year. Treasury yields, equity valuations in growth-sensitive sectors, and dollar direction all hinge significantly on whether Friday’s data confirms the disinflation trend or suggests inflation is becoming entrenched above the 2% target as the economy enters what some analysts are calling the final mile of the inflation fight.
Stay frosty out there, forex friends!
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