Forex Today: Dollar surges alongside government bond yields

Valeria Bednarik FXStreet

What you need to know on Tuesday, January 4:

The greenback is the best performer on Monday, appreciating against all of its major rivals on the back of soaring US government bond yields. The yield on the 10-year US Treasury note kick-started the day at 1.53%, jumping to 1.635% mid-US afternoon, holding nearby as the day comes to an end.

Coronavirus-related concerns dampened the market’s mood as the Omicron variant is indeed a tsunami of contagions as the WHO anticipated a couple of weeks ago, affecting not only the northern hemisphere. So far, governments have avoided imposing restrictions, but the situation may worsen if the health systems begin to stress.

US stock advanced despite the dismal mood, with the DJIA adding over 100 points.

The EUR/USD pair trades a few pips below the 1.1300 level, while GBP/US lost the 1.3500 threshold. Commodity-linked currencies edged lower vs the greenback, with AUD/USD trading around 0.7190 and USD/CAD currently at 1.2754.

The dollar appreciated even against safe-haven assets, with USD/JPY trading above 115.00.

Gold plunged to 1,798.29, ending the day at around $1,802. Crude oil prices were little changed on a daily basis, recovering from an intraday dip. WTI settled at around $76.00 a barrel.

Shiba Inu, MATIC, Terra and Solana top the list of cryptocurrencies offering high returns

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds steady above 1.1850 as markets eye Eurozone GDP, US CPI inflation releases

The EUR/USD pair trades on a flat note near 1.1870 during the early Asian session on Friday. The major pair steadies amid mixed signals from the latest release of US economic indicators. Traders await the preliminary reading of the Eurozone Gross Domestic Product for the fourth quarter and US inflation data, which are published later on Friday.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold: Will US CPI data trigger a range breakout?

Gold retakes $5,000 early Friday amid a turnaround from weekly lows as US CPI data loom. The US Dollar consolidates weekly losses as AI concerns-driven risk-off mood stalls downside. Technically, Gold appears primed for a big range breakout, with risks skewed toward a bullish break.