Daily Currency Market Report - 4 Feb 2026 1.0 USD 6.1.1 Synthesis The US Dollar is trading defensively, struggling to maintain its recent rebound as domestic data softens and geopolitical crosscurrents intensify. Goldman Sachs highlights that while the Senate passed a funding bill to avert a shutdown, the January ADP employment report missed expectations (rising just 22k vs 45k consensus), signaling a potential "low-hiring" environment that could weigh on the upcoming Non-Farm Payrolls data. This softness, combined with a mixed ISM Services report, has tempered the market's enthusiasm for a hawkish Fed repricing. J.P. Morgan notes that despite the "Fed independence" noise, the dollar's inability to rally on recent yield spikes suggests buyer exhaustion. Geopolitically, the focus is on US-I