Forex Today: Data, FOMC should rule the sentiment

Pablo Piovano FXStreet

Another firm session of the Greenback put the risk complex under further pressure, sending the USD Index (DXY) to flirt with the upper end of the recent range and EUR/USD to the sub-1.0800 region, all amidst the emergence of usual pre-FOMC cautiousness.

Here is what you need to know on Tuesday, January 30:

The US Dollar Index (DXY) kicked off the new trading week on a robust note, surpassing the 103.80 level ahead of the FOMC gathering and the publication of the Nonfarm Payrolls. However, before those key events emerge, the FHFA’s House Price Index and the Consumer Confidence gauge by the Conference Board are both due on January 30.

EUR/USD accentuated its bearish feeling and broke below the 1.0800 support level to print fresh multi-week lows at the beginning of the week. In the euro docket, the advanced Q4 GDP Growth Rate in Germany and the broader Euroland will take centre stage on January 30.

Across the Channel, Mortgage Approvals and Mortgage Lending figures are due on Tuesday. GBP/USD clinched its third consecutive daily pullback on Monday in response to the solid price action around the greenback.

USD/JPY came under renewed downside pressure following two daily advances in a row and broke below the 148.00 level. The release of the December Unemployment Rate will be the salient event in “The Land of the Rising Sun” on January 30.

Positive prospects from news citing extra stimulus in China continued to prop up the mood around the Aussie dollar, motivating AUD/USD to start the week with decent gains, although still capped by the 0.6600 barrier. On Tuesday, Retail Sales prints should gather all the attention Down Under.

While unabated geopolitical concerns bolstered crude oil prices, demand concerns stemming mainly from China, as well as the potential tighter-for-longer stance by the Fed and the ECB, eventually dragged the commodity to the negative zone on Monday.

Declining US yields encouraged Gold prices to resume their upside, while Silver climbed to multi-day highs backed by China’s stimulus.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.