EUR/USD
1.18081
-0.375%
Gold
4721.01
-2.612%
Oil
62.260
-4.929%
USD/JPY
155.356
0.388%
GBP/USD
1.36343
-0.353%
GBP/JPY
211.823
0.034%
Real-time News
February 2nd - US Treasuries rose slightly across most maturities, driven by the spillover effects of the precious metals crash to other markets and increased demand for safe-haven assets. Following Trumps nomination of Warsh as Federal Reserve Chairman last week, money markets are betting on three Fed rate cuts this year, boosting Treasury prices. Jefferies International Chief Economist Mohit Kumar stated, "Warsh has always been hawkish and a critic of the Feds balance sheet expansion. But logically, its hard to say that Warsh won Trumps favor based on his hawkish stance." The market is also weighing the potential adjustments Warsh might make to the balance sheet, speculating that he might quickly push for balance sheet reduction. Guy Stear, Head of Developed Markets Strategy at Amundi, said, "The market expects lower short-term interest rates, while the Fed will control its balance sheet, meaning the yield curve will steepen. The problem is, if long-term interest rates actually start to rise during this steepening process, then the Fed may face pressure to expand its balance sheet."The UKs FTSE 100 index rose 0.8%, hitting a new record high.Brazils National Petroleum Agency: Brazils oil production reached 4.015 million barrels per day in December, a 17.4% increase over the previous year.Brazils National Petroleum Institute (NPC) predicts that Brazils oil production will reach a record 3.77 million barrels per day in 2025, a 12.3% increase over the previous year.February 2 – US companies have criticized Polands Digital Affairs Ministrys plan to introduce a digital services tax, arguing that the move would unfairly target some of the largest foreign investors. Public consultation on the draft bill, which proposes a tax of up to 3% on digital platforms that sell advertising, process user data, or facilitate online transactions, will apply to companies with global revenue exceeding €1 billion and reporting at least 25 million złoty (approximately $7 million) in revenue in Poland. The Trump administration has threatened retaliatory action against the EUs taxation of US tech companies, and this dispute, following trade and the Greenland issue, is becoming another point of transatlantic friction. Marta Pawlak, Director of Legal and Public Policy at the US Chamber of Commerce in Poland, stated, "This proposal ignores the positive impact US investors have had on the Polish economy over the years and signals a departure from the long-standing relationship of mutual trust. US companies have $60 billion in assets in Poland. This policy sends a worrying signal to US investors across all sectors."
