The dollar added to recent gains and rose to new cycle highs supported by investors’ appreciation of fewer (if any) interest rate cuts by the Federal Reserve this year.
Here’s what you need to know on Tuesday, January 14:
The US Dollar Index (DXY) broke through the 110.00 barrier for the first time since November 2022, amid higher yields and speculation of only one interest rate cut by the Fed in the current year. Output Prices will focus attention, followed by the NFIB Business Optimism Index and the RCM/TIPP Economic Optimism Index. Additionally, the Fed’s Schmid and Williams are expected to speak.
EUR/USD performed poorly and extended its bearish trend to the region below 1.0200 against the backdrop of persistent bullish pressure on the US Dollar. Lane’s ECB speech will be the only event on the euro calendar.
GBP/USD maintained its well-established downtrend, revisiting the area below 1.2100 although managing to regain some balance later. BoE’s Breeden is expected to speak.
USD/JPY achieved its third consecutive daily decline due to the further appreciation of the Japanese Yen. The Economic Observers Survey, Bank Loan figures and Current Account results are expected on the Japanese agenda. In addition, BoJ’s Himino is expected to speak.
AUD/USD attempted a modest rebound after four consecutive days of losses, although it remained under pressure and close to the 0.6100 region. The Westpac Consumer Confidence Index will be published alongside final Building Permits and Private Housing Approvals.
US WTI prices extended their auspicious monthly rebound and surpassed the $78.00 per barrel mark due to more US sanctions on Russian oil.
Gold prices lost some of their recent multi-day advance following the stronger Dollar and speculation of just one interest rate cut by the Fed this year. Likewise, Silver prices deflated to five-day lows, breaking key support at the $30.00 per ounce mark.
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.
