US Dollar and Major Currency Pairs💱 Forex

USD Weakness Fuels Currency Pair Shifts; Fed-Treasury Debate Looms

February 9, 2026, 06:01 AM154 words10 sourcesAI-Generated · Reviewed by editorial team
USD Weakness Fuels Currency Pair Shifts; Fed-Treasury Debate Looms

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The US Dollar experienced broad weakness this week, influencing major currency pairs. The EUR/USD climbed towards 1.1830-1.1835, supported by diverging monetary policies – anticipated Fed rate cuts versus a hawkish ECB stance. Similarly, the AUD/USD rose above 0.7000 following hawkish comments from the RBA, while the GBP/USD saw initial gains before softening due to increasing expectations of BoE rate cuts. The USD/JPY strengthened after Japan’s LDP election win. Market participants are keenly awaiting the delayed January US Non-Farm Payrolls (NFP) report, which is expected to significantly impact USD valuations. A debate surrounding a potential re-evaluation of the Fed-Treasury relationship, proposed by Kevin Warsh, has sparked concerns about central bank independence and potential yield management, which could undermine the dollar’s safe-haven status. Investor sentiment towards the Euro and Canadian Dollar has also improved, with speculative positions reaching levels not seen since 2023. Japan’s current account also exceeded expectations, potentially providing further support for the Yen.

Source Articles

This article is based on analysis of 10 source articles from our news database.

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