Gold, silver plunge in historic day
Global markets turned sharply lower on Friday after US president Donald Trump appointed banker, academic, and policymaker Kevin Warsh as the new Federal Reserve chair.
Warsh, known for favouring tighter policy, surprised Wall Street after Trump had previously signalled a preference for lower interest rates. Warsh famously opposed the second round of quantitative easing in November 2010 and resigned shortly after.
The US dollar surged on the announcement, driving precious metals sharply lower. Gold fell 9.0% in its biggest one‑day drop since June 2013, while silver plunged 26%—the steepest fall since January 1980.
The Australian dollar slipped, with AUD/USD falling 1.2% to move back below US70c. NZD/USD declined 0.9%.
In Asia, USD/CNH gained 0.2%, while USD/SGD rose 0.5%.
China and UK deepen ties
Chinese president Xi Jinping and UK prime minister Keir Starmer agreed to build a long-term, stable strategic partnership, according to Xinhua.
The UK government said China will ease entry rules for British tourists and business travellers, allowing visa-free stays of up to 30 days.
Both sides announced new trade agreements and committed to exploring a potential bilateral services deal.
USD/CNH firmed, rebounding 0.2% from recent lows of 6.9313, last seen on January 27. The pair now faces resistance at the 21‑day EMA of 6.9653, followed by the 50‑day EMA at 7.0038, with dollar buyers seeking to take advantage of oversold conditions.
RBA, US jobs due
A packed week of high‑impact events is set to drive currency volatility, with multiple central bank decisions and key labour market data in focus.
The Reserve Bank of Australia leads on Tuesday, with markets expecting a rate increase to 3.85%. The Bank of England and European Central Bank follow later in the week and are both expected to hold rates steady, although any shift in guidance could spark sharp moves in GBP and EUR.
Inflation will remain under scrutiny, with Eurozone CPI flash estimates and composite PMI readings due Wednesday. These indicators will help shape expectations for future ECB policy. French and German PMI releases will offer further insight into the euro area outlook.
In the US, a heavy data slate includes JOLTS job openings, ISM manufacturing and services surveys, and Saturday’s nonfarm payrolls report. Consensus looks for a modest 70k jobs gain and an unchanged unemployment rate of 4.4%, although any surprise could prompt significant moves in the dollar.
In Asia-Pacific, New Zealand’s Q4 labour market report is due, with unemployment expected to hold at 5.3%, while Australia’s trade balance and PMI data will provide additional signals on regional growth momentum.
Global markets hit by Warsh pick
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 3 – 7 Feb
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
