Forex Today: Tariffs and NFP should keep markets cautious

The US Dollar regain some composure and partially reversed the weekly correction ahead of the release of the key US labour market report and amid persistent uncertainty surrounding Trump's trade policies.

Here is what you need to know on Friday, February 7:

The US Dollar Index (DXY) managed to reclaim some ground lost helped by a mild bounce in US yields and a hiccup in the risk-linked universe. The January Nonfarm Payrolls will be the salient event at the end of the week, seconded by the preliminary Michigan Consumer Sentiment, and Wholesale Inventories.

EUR/USD saw its upside momentum somewhat curtailed, retreating to the mid-1.0300s on the back of the better tone in the US Dollar. Germany's Balance of Trade results will be released along with the speech by the ECB's De Guindos.

GBP/USD tumbled to three-day lows and revisited the 1.2360 region on the back of the BoE's rate cut and USD buying. The BBA's Mortgage Rate, the Halifax House Price Index and the speech by the BoE's Pill are all due across the Channel.

USD/JPY kept its decline well in place, retesting two-month lows in the 151.80 region on the back of intense buying interest around the Japanese yen. Household Spending figures, and the advanced Coincident Index and Leading Economic Index will be published.

AUD/USD's weekly recovery came short of the 0.6300 hurdle, sparking a corrective decline on Thursday on the back of the widespread gains in the US Dollar.

Further weakness saw prices of the American WTI approach the key contention zone around $70.00 per barrel, or fresh five-week lows.

Gold prices halted their five-day bullish move on Thursday, coming under fresh selling pressure a day after hitting an all-time peak past the $2,880 mark per ounce troy. Silver prices followed suit, dropping markedly to the sub-$32.00 mark per ounce.