fxs_header_sponsor_anchor

News

Forex Today: Geopolitics dominated the headlines on Monday

Thin trade conditions due to the MLK holiday in the US and persevering geopolitical risks dominated the mood among market participants at the beginning of a new trading week. On the political front, the US election season kicked off with the Iowa caucus.

Here is what you need to know on Tuesday, January 16:

The firm demand for the greenback encouraged the USD Index (DXY) to add to Friday’s gains on the back of the resurgence of risk aversion bolstered by geopolitical concerns, particularly in the Middle East. The DXY has extended its consolidative theme in place since the beginning of the year. In the US, the New York Empire State Manufacturing Index is due on Tuesday along with a speech by FOMC C. Waller and short-term Bill Auctions.   

EUR/USD managed to bounce off daily lows near 1.0930 and settled around the 1.0950 region amidst marginal gains and a decent rebound in German yields, while comments from ECB policymakers ruling out rate cuts in the near term supported the bounce in spot. In the meantime, Germany is expected to be at the centre of the debate on Tuesday with the releases of the final December CPI, the Economic Sentiment tracked by the ZEW Institute, and the speech by the Bundesbank’s J. Nagel.

GBP/USD kept its selling bias unchanged amidst the decent rebound in the greenback ahead of the publication of the key labour market report and the speech by BoE Governor A. Bailey.

In Japan, the release of Producer Prices should shed extra details on the inflationary scenario in the country, while USD/JPY managed to reverse two sessions of losses and revisit the proximity of the 146.00 barrier on Monday.

There seems to be no respite for the so-far yearly leg lower in AUD/USD, which keeps putting the key contention zone around 0.6650 to the test. Later in the Asian trading hours, Westpac will publish its monthly gauge of Consumer Confidence for the month of January.

USD/CAD rose for the third session in a row, advancing to a new five-week high near 1.3450 amidst the risk-off-driven mood in the greenback, while the bearish tone in crude oil prices also favoured the selling bias in the Canadian Dollar. The latter is expected to take centre stage on Tuesday with the release of critical inflation figures for the month of December.

Modest gains in Gold and Silver appeared underpinned by the pick-up of geopolitical effervescence and its echo on the risk-off mood.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.