Here's what you need to know to trade today Wednesday January 10:
The US dollar (USD) gained strength against its rivals on Tuesday as markets turned cautious ahead of Thursday's inflation data. Early on Wednesday, major currency pairs remain relatively calm. The comments from central bankers and the auction of 10-year US Treasury bonds that will take place later could affect the price action of the currencies.
Dollar Quote this week
The following table shows the percentage change of the US Dollar (USD) against major currencies this week.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.13% | 0.20% | 0.24% | 0.36% | 0.20% | 0.25% | 0.27% | |
| EUR | -0.13% | 0.07% | 0.13% | 0.23% | 0.08% | 0.13% | 0.14% | |
| GBP | -0.22% | -0.07% | 0.06% | 0.17% | 0.02% | 0.06% | 0.08% | |
| CAD | -0.24% | -0.11% | -0.02% | 0.11% | -0.02% | 0.00% | 0.03% | |
| AUD | -0.37% | -0.24% | -0.17% | -0.12% | -0.13% | -0.12% | -0.10% | |
| JPY | -0.24% | -0.07% | -0.02% | 0.05% | 0.16% | 0.05% | 0.05% | |
| NZD | -0.25% | -0.10% | -0.06% | 0.00% | 0.11% | -0.05% | 0.01% | |
| CHF | -0.28% | -0.15% | -0.08% | -0.03% | 0.08% | -0.09% | -0.03% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).
Wall Street's main indices opened in negative territory on Tuesday. Escalating geopolitical tensions in the Middle East caused investors to stay away from risk-sensitive assets. Citing a senior US Defense Department official, CNBC News reported late Tuesday that Iran-backed Houthi militants launched the largest attack to date against commercial merchant ships in the Red Sea. Although stock indices managed to recover some of the earlier losses towards the end of the session, US stock index futures are trading slightly lower in the European morning on Wednesday. Meanwhile, the 10-year US Treasury yield remains slightly above 4% and the DXY Dollar Index remains above 102.50. The president of the New York Federal Reserve (Fed), John Williamswho already said in December that they were not discussing rate cuts, will give a speech late in the American session.
Data from Australia showed early on Wednesday that the Consumer Price Index (CPI) rose 4.3% year-on-year in November. This figure, following the 4.9% increase recorded in October, was slightly below market expectations of 4.4%. After closing in negative territory, the pair AUD/USD rose slightly during the Asian session and is now trading around 0.6700.
He GBP/USD It lost traction after breaking through the 1.2750 level on Tuesday and posted daily losses. The pair remains lower and trades below 1.2700 in the early hours of the European session on Wednesday. The governor of the Bank of England, Andrew Baileywill testify later and answer questions about the threat that rising interest rates pose to financial stability.
He EUR/USD it retreated on Tuesday, after failing to make a decisive move on Monday. The pair is trading below 1.0950. The vice president of the European Central Bank (ECB), Luis de Guindosgive a speech during the European day on Wednesday.
After the hectic movement on Tuesday, the USD/JPY has gained bullish momentum and has broken through the 145.00 level on Wednesday. Data from Japan revealed earlier in the day that Job Cash Earnings increased only 0.2% annually in November. This figure, after the 1.5% increase recorded in October, was well below market expectations, which expected 1.5%.
The price of Gold It reversed direction on Tuesday after rising above $2,040 and closed the day virtually unchanged. XAU/USD remains under modest bearish pressure and is trading slightly above $2,020 in the early hours of Wednesday.
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.
