Forex Today: Dollar kicked off the week on the back foot
|While the greenback survives just above the 102.00 region, the risk-associated complex appears to have regained its smile at the beginning of a week dominated by the upcoming release of US inflation figures measured by the CPI.
Here is what you need to know on Tuesday, January 9:
The US Dollar Index (DXY) started the week with modest losses just above the 102.00 barrier amidst investors’ preference for risk-linked assets and a corrective decline in US yields across the board.
US stocks accelerated the upside and appeared on track to challenge the record high seen earlier in the month amidst the weaker dollar and a firm appetite for the risk complex.
EUR/USD left behind Friday’s inconclusive price action and printed decent gains to the 1.0980 zone, where some initial resistance turned up. Bolstering the daily uptick in the pair emerged a tepid improvement in the Investor Confidence tracked by the Sentix Index as well as better-than-expected Retail Sales readings in the euro bloc.
GBP/USD maintained the bullish bias for the fourth session in a row, regaining the 1.2700 barrier and beyond, helped by the positive risk-on sentiment.
Declining US yields and the corrective knee-jerk in the greenback favoured the daily pullback in USD/JPY to the 143.60 region, although it reclaimed the 144.00 hurdle towards the end of the NA session.
AUD/USD added to Friday’s small recovery and navigated a volatile session, eventually regaining the 0.6700 level despite the generalized bearish performance in the commodity space.
USD/CAD could not sustain an early move just past 1.3400 the figure on Monday, eventually retreating to the mid-1.3300s against the backdrop of an incipient consolidative theme.
Gold retreated to three-week lows near $2015 per troy ounce amidst traders’ repricing of the likelihood that the Fed might extend its restrictive stance for longer, particularly in response to the December NFP prints. In the same line, Silver set aside two straight sessions of losses and revisited the area below the $23.00 mark.
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