This is what you need to know to trade today Thursday January 26:
The Dollar Index remains in negative territory below 102.00 after Wednesday’s slide. No relevant data will be published on the European economic agenda, and risk perception will be the determining factor during the first half of the day. December durable goods orders, weekly jobless claims and new home sales for December will be released early in the US session. And most importantly, the US Bureau of Economic Analysis will publish its first estimate of Gross Domestic Product (GDP) growth for the fourth quarter.
Market expectations point to an annualized economic expansion of 2.6% in the fourth quarter, after the 3.2% growth registered in the third.
Previous US Gross Domestic Product: Three reasons to expect a result that boosts the USD
On Wednesday, the Bank of Canada (BOC) announced that it had raised its official interest rate by 25 basis points to 4.5%, as expected. In its statement, the BoC said it will likely keep the rate at this level while it assesses the impact of cumulative rate hikes. The entity’s Governor, Tiff Macklem, explained: “If we have to do more to get inflation to the 2% target, we will do it; if upside risks materialize, we are willing to raise rates further.” After reaching a multi-day high at 1.3430 with initial reaction, the USD/CAD lost traction and closed the day slightly below 1.3400. At time of writing, the pair is trading up and down in a tight channel around 1.3390.
The BoC’s “conditional pause” in tightening monetary policy forced the 10-year US Treasury yield to stay below 3.5% and prevented the dollar from strengthening against its main rivals. For their part, the main Wall Street indices closed the day with few changes after opening in the red. In the European morning today, US stock index futures are trading slightly higher.
The pair EUR/USD it benefited from broad-based dollar weakness and rallied above 1.0900 before entering a consolidation phase early Thursday. Notably, the European Central Bank (ECB) quiet period begins today and policy makers are unlikely to comment on the policy outlook before next week’s meeting.
The GBP/USD snapped a two-day losing streak on Wednesday. The pair is trading slightly higher, a few points above 1.2400.
The USD/JPY it was under modest bearish pressure and fell below 130.00. The pair continues to decline towards 129.00 early Thursday. During the Asian session, the Bank of Japan (BoJ) Summary of Opinions revealed that policymakers agreed that the central bank should prevent yields from moving up along the curve, while taking into account the functioning of the market. of bonds.
The price of Prayed took advantage of the drop in US Treasury yields on Wednesday and posted gains for the third day in a row. The XAU/USD pair continued to rise in the Asian session, reaching as close as $1,950 before pulling back slightly.
After Tuesday’s downward correction, the Bitcoin gained momentum higher and approached $24,000 on Wednesday, before erasing some of its daily gains late in the American session. As of this writing, BTC/USD is trading flat, slightly above $23,000. ethereum it rose nearly 4% on Wednesday and recaptured most of Tuesday’s decline. The ETH/USD pair is moving sideways around $1,600.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
