Here is what you need to know on Wednesday, January 15:
Trade: The US will maintain most of the tariffs it has slapped on China at least until November – when the US elections are due. The market mood has worsened and the yen recovered on fears that Phase One of the trade deal – due to be signed today – will not be helpful enough to the global economy. Also, the administration is set to tighten pressure on Huawei, China's telecom giant.
US-EU trade: The European Commission's Phil Hogan continues trade talks in Washington after the first day of negotiations ended without a breakthrough.
GBP/USD has been recovering and recaptured at 1.30. The Bank of England's Michael Saunders – a hawk turned dove – will speak early in the day and may join the calls for cutting rates. The UK then releases inflation figures for December, with the headline Consumer Price Index expected to remain unchanged at 1.5%. See UK inflation: Cementing the rate cut or triggering a GBP/USD correction? Three scenarios
US data: The US Producer Price Index is due out today after CPI came out at 2.3% on the headline and on the core. See US inflation reinforces the Fed neutral policy. The administration is considering disallowing reporters in the lockup room to use computers for preparing their news stories, potentially delaying the publication.
Federal Reserve members Patrick Harker and Robert Kaplan – both voters in 2020 – will speak today and will likely reaffirm the bank's neutral stance.
US politics: Nancy Pelosi, Speaker of the House, will send the Articles of Impeachment to the Senate, setting the stage for a trial for President Donald Trump. The chances of ousting him are low. Democratic presidential hopefuls battled it out in another televised debate ahead of the Iowa caucuses. Joe Biden, former Vice President, remains the frontrunner.
Iran: While tensions with the US have eased, the European signatories of the nuclear deal are set to introduce new sanctions, trying to bring the Middle-Eastern nation back to compliance.
Cryptocurrencies have been retreating from the highs, with Bitcoin consolidating around $8,600, and Ethereum above $160. Dash stands out with a leap of over 30%.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold hovers around all-time highs near $3,250
Gold is holding steady near the $3,250 mark, fuelled by robust safe-haven demand, trade war concerns, and a softer-than-expected US inflation gauge. The US Dollar keeps trading with heavy losses around three-year lows.
EUR/USD remains firm, struggles to retest 1.1400 and above
By the end of the week, EUR/USD had cooled off from its multi-year peak above 1.1400, settling robustly around 1.1360. Meanwhile, the Greenback remains on the back foot after lacklustre data, stagflation concerns, and global trade war fears.
GBP/USD trims gains, recedes to the 1.3070 zone
GBP/USD now gives away part of the earlier advance to fresh highs near 1.3150. Meanwhile, the US Dollar remains offered amid escalating China-US trade tensions, recession fears in the US, and softer-than-expected US Producer Price data.
Bitcoin, Ethereum, Dogecoin and Cardano stabilze – Why crypto is in limbo
Bitcoin, Ethereum, Dogecoin and Cardano stabilize on Friday as crypto market capitalization steadies around $2.69 trillion. Crypto traders are recovering from the swing in token prices and the Monday bloodbath.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.