Forex Today – Asian Session: Inflation in the Eye of the Hurricane

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Things to watch out for on Wednesday, January 18:

The US dollar maintained its intrinsic weakness on Tuesday and ended the day with losses against its main rivals. The euro it was the worst performing currency, while sterling was the best performer against the USD.

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On the one hand, the pair EUR/USD fell to 1.0771 amid market talk suggesting European Central Bank (ECB) officials are considering slowing the pace of tightening. Rumors suggest that President Christine Lagarde and company will opt for a 50 basis point (bp) rate hike in February, reducing hikes to 25 bp from March.

Elsewhere, GBP/USD flirted with the 1.2300 level after UK employment figures hinted that the labor market is relatively tight. In this way, the Bank of England would have room to raise the reference rate and maintain it for longer. The UK will release December inflation figures on Wednesday.

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The Price Index at Consumption (CPI) Canadian, rose at an annual rate of 6.3% in December, while the monthly CPI fell 0.6%. The USD/CAD pair is trading around 1.3376.

The AUD/USD pair finished near the 0.7000 level on Tuesday, retaining its positive momentum despite the poor tone in global stocks.

The USD/JPY pair is trading around 128.40 awaiting the publication of the report of the bank of japanfrom Japan.

Gold is trading little changed around $1,907, while crude oil prices rose, with WTI hovering around $81 a barrel.

EU inflation, the US Producer Price Index and the UK CPI will be released on Wednesday.

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Source: Fx Street

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