The United States (US) Institute of Supply Management (ISM) Services Purchasing Managers’ Index (PMI) data for January is scheduled to be published today at 15:00 GMT.

TD Securities reports on Eurozone inflation, which has dropped to 1.7% year-on-year, primarily due to energy prices. The analysis indicates that this disinflationary trend is not expected to influence the ECB's upcoming meeting, as it has been anticipated.

The AUD/USD pair trades marginally lower around 0.7020 during the European trading session on Wednesday. The Aussie pair ticks down as the US Dollar (USD) trades higher ahead of the key United States (US) economic data releases in the North American session.

EUR/JPY trades around 185.10 on Wednesday at the time of writing, up 0.55% on the day and reclaiming the 185 level.

The US Dollar (USD) shows marginal gains against its Canadian counterpart on Wednesday, trading near 1.3650 at the moment of writing.

Eurozone Harmonized Index of Consumer Prices (MoM) climbed from previous 0.2% to 2% in January

Eurozone Core Harmonized Index of Consumer Prices (MoM) unchanged at 0.3% in January

Eurozone Harmonized Index of Consumer Prices (YoY) meets expectations (1.7%) in January

Eurozone Producer Price Index (MoM) in line with expectations (-0.3%) in December

Eurozone Producer Price Index (YoY) came in at -2.1%, above forecasts (-2.3%) in December

Deutsche Bank Research Team analyzes the European Central Bank's (ECB) monetary policy outlook, suggesting that the ECB is likely to remain on hold throughout 2026, with the next move expected to be a hike in mid-2027.

TD Securities analysts Prashant Newnaha and Alex Loo discuss the implications of Japan's upcoming Lower House Election on fiscal policy and the USDJPY exchange rate.

AUD/JPY extends its winning streak for the third successive session, trading around 110.00 during the European hours on Wednesday.

The New Zealand Dollar is practically flat against the US Dollar on Wednesday, trading at 0.6040 at the time of writing, after being rejected at 0.6063 on Tuesday. A string of mixed New Zealand employment figures has halted the pair’s recovery from weekly lows at 0.5990.

Eurozone HCOB Composite PMI registered at 51.3, below expectations (51.5) in January

Eurozone HCOB Services PMI below expectations (51.9) in January: Actual (51.6)

Germany HCOB Composite PMI registered at 52.1, below expectations (52.5) in January

Germany HCOB Services PMI below forecasts (53.3) in January: Actual (52.4)

France HCOB Composite PMI came in at 49.1, above expectations (48.6) in January

RaboResearch report authored by Jane Foley, Senior FX Strategist at Rabobank, discusses the recent 25 bps rate hike by the RBA and its implications for the Australian Dollar (AUD). The market reacted positively, pushing AUD/USD close to a three-year high.

France HCOB Services PMI above forecasts (47.9) in January: Actual (48.4)

Italy HCOB Services PMI came in at 52.9, above forecasts (51.5) in January

The Pound Sterling (GBP) trades higher against its major currency peers on Wednesday as investors await the Bank of England’s monetary policy announcement on Thursday.

Societe Generale reports on the recent movements in USD/JPY, highlighting a V-shaped rebound and the importance of key support and resistance levels. The analysis indicates that the currency pair is regaining upward momentum and is challenging the 50-DMA.

The Euro (EUR) is trading moderately higher against the US Dollar (USD) for the second consecutive day on Wednesday.

The Euro remains practically flat, a few pips above a fresh five-month low, at 0.8620 against a stronger British Pound on Wednesday.

Eurostat will publish the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for January later on Wednesday at 10:00 GMT.

The USD/CAD pair turns lower for the second straight day and trades below mid-1.3600s through the early European session on Wednesday, though the downtick lacks bearish conviction amid mixed cues.

Here is what you need to know on Thursday, February 4:

The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 3.85% and maintained a hawkish bias due to persistent inflationary pressures.