Forex Today – Asian Session: The wait is about to end, it does not look good for the USD

This is what you need to know to trade today Thursday January 12:

Market traders held their breath for the second day in a row, and major pairs held at known levels. Tensions increased ahead of the release of the December US Consumer Price Index (CPI), with attention focused on central bank officials.

The European Central Bank (ECB) officials were mostly hard-liners, propping up the Euro. The governor of the French central bank, Francois Villeroy de Galhau, stated that the ECB should aspire to reach the terminal rate before the summer, confirming that they would have to raise rates further in the coming months. The Governor of the Austrian Central Bank, Robert Holzmann, opted for a more aggressive stance, noting that “rates will need to rise significantly further to reach levels restrictive enough to ensure a timely return of inflation to target“, and finally added that it is too early to talk about a possible terminal rate. Finally, Olli Rehn, member of the Governing Council of the ECB, stated that rates in the euro zone will still have to rise significantly in the next meetings and reach restrictive levels to curb inflation.

On the other side of the Atlantic, the representative of the US Federal Reserve in Boston, Susan Collins, was in favor of minor rate hikes. Collins said he thinks 25 basis points or 50 basis points would be reasonable, adding that at this point is inclined towards a rise of 25 basis points, but clarifying that it depends a lot on the data.

The Kremlin reaffirmed that the president Vladimir Putin He is open to talks on Ukraine, though he added that a deal would have to come on Russian terms. A peaceful solution to the conflict is still some way off.

The EUR/USD continues to hover around 1.0750, unchanged for the second day in a row, while the GBP/USD settled around 1.2140. The pair AUD/USD started the day on the wrong foot, but pared losses and made a modest advance, trading just above the 0.6900 level. The USD/CAD around 1.3420, while the USD/JPY stands at 132.40.

The gold hit a new eight-month high at $1,886.63 a troy ounce, but pulled back before the Wall Street open and ended the day with slight gains around $1,877.

The prices of Petroleum Crude oil rose, helped by a report from the US Energy Information Administration (EIA), according to which the agency expects world consumption of liquid fuels, such as gasoline, diesel and jet fuel, to reach new record highs in 2024. The headline eclipsed a large increase in US reserves.

Attention on Thursday will be on the United States Consumer’s price index, which forecasts a rise of 6.5% year-on-year in December. The underlying figure will come in at 5.7%, down from 6% previously.