Anna 
In the early hours of Tuesday’s European trading session, the U.S. Dollar (USD) encountered a lack of demand, causing the U.S. Dollar Index to dip below 103.00. Market focus turned to the European Commission’s imminent release of the preliminary reading of January’s consumer confidence index.
Later in the day, the U.S. economic calendar is set to feature the Richmond Fed manufacturing index for January, providing valuable insights into the current state of the American manufacturing sector. Additionally, a 2-year Treasury auction is scheduled for later in the U.S. session, adding to the financial events impacting the currency markets.
Following the January policy meeting, the Bank of Japan (BoJ) adhered to expectations by maintaining unchanged policy settings. The BoJ retained the -10 basis points rate and 0% 10-year Japanese Government Bond (JGB) yield targets. The central bank also upheld its yield curve control (YCC) strategy, allowing the 10-year government bond yield to hover around 1.0%. This decision comes amid ongoing efforts to navigate Japan’s economic landscape.
