Here’s what you need to know on Monday, January 27:
Markets take a cautious stance to start the week that will feature key central bank meetings and macroeconomic data releases. The European economic calendar will include IFO sentiment data from Germany on Monday. Later in the day, the Chicago Fed’s national activity index and US new home sales data could provide fresh momentum.
The US Dollar (USD) benefits from the risk-off atmosphere early on Monday. After losing more than 1.5% the previous week, the Dollar Index remains in positive territory above 107.50 in the European morning. The Wall Street Journal reported that US President Donald Trump’s advisers were not willing to negotiate or hold talks with Canada or Mexico and would proceed with 25% tariffs starting February 1.
US Dollar PRICE Last 7 days
The table below shows the percentage change of the United States Dollar (USD) against the main currencies in the last 7 days. US dollar was the weakest currency against the Pound sterling.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.80% | -2.27% | -0.23% | -0.60% | -1.51% | -1.65% | -0.67% | |
| EUR | 1.80% | -0.54% | 1.48% | 1.11% | 0.35% | 0.04% | 1.02% | |
| GBP | 2.27% | 0.54% | 1.98% | 1.66% | 0.91% | 0.58% | 1.57% | |
| JPY | 0.23% | -1.48% | -1.98% | -0.36% | -1.23% | -1.52% | -0.61% | |
| CAD | 0.60% | -1.11% | -1.66% | 0.36% | -0.86% | -1.06% | -0.09% | |
| AUD | 1.51% | -0.35% | -0.91% | 1.23% | 0.86% | -0.40% | 0.59% | |
| NZD | 1.65% | -0.04% | -0.58% | 1.52% | 1.06% | 0.40% | 0.80% | |
| CHF | 0.67% | -1.02% | -1.57% | 0.61% | 0.09% | -0.59% | -0.80% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the box will represent USD (base)/JPY (quote).
Meanwhile, tech stocks remain under heavy pressure in pre-market trading on Monday due to reports that China’s DeepSeek AI model outperformed Meta’s Llama 3.1, OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5. At press time, Nasdaq futures were down nearly 2.5% on the day and S&P futures were down 1.4%. On Wednesday, the Federal Reserve will announce its monetary policy decisions.
EUR/USD rose more than 2% and closed in positive territory for the second consecutive time last week. The pair corrects lower early on Monday and is trading slightly above 1.0450.
GBP/USD posted impressive gains on Friday and was up about 2.5% the week before. The pair remains under modest bearish pressure in the European morning and fluctuates near 1.2450.
USD/JPY remains relatively calm around 156.00 on Monday. Following the Bank of Japan’s (BoJ) decision to raise the policy rate by 25 basis points, the Japanese Yen struggled to strengthen against its main rivals as BoJ Governor Kazuo Ueda refrained from committing to further tightening of politics at the press conference after the meeting.
Gold It rose above $2,780 on Friday and was close to hitting a new all-time high. XAU/USD drops at the start of the week but manages to stay above $2,750.
Feeling of risk FAQs
In the world of financial jargon, the two terms “risk appetite (risk-on)” and “risk aversion (risk-off)” refer to the level of risk that investors are willing to bear during the investment period. reference. In a “risk-on” market, investors are optimistic about the future and are more willing to buy risky assets. In a “risk-off” market, investors begin to “play it safe” because they are worried about the future and, therefore, buy less risky assets that are more certain to provide a return, even if it is relatively modest.
Typically, during periods of “risk appetite”, stock markets rise, and most commodities – except gold – also appreciate as they benefit from positive growth prospects. The currencies of countries that are large exporters of raw materials strengthen due to increased demand, and cryptocurrencies rise. In a “risk-off” market, Bonds rise – especially major government bonds -, Gold shines and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar benefit.
The Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD) and minor currencies such as the Ruble (RUB) and the South African Rand (ZAR) tend to rise in markets where there is an “appetite for risk.” This is because the economies of these currencies rely heavily on commodity exports for their growth, and these tend to rise in price during periods of “risk appetite.” This is because investors anticipate higher demand for raw materials in the future due to increased economic activity.
The major currencies that tend to rise during periods of “risk aversion” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The Dollar, because it is the world’s reserve currency and because in times of crisis investors buy US public debt, which is considered safe because it is unlikely that the world’s largest economy will go into default. The Yen, due to the increase in demand for Japanese government bonds, since a large proportion is in the hands of domestic investors who are unlikely to get rid of them, even in a crisis. The Swiss franc, because strict Swiss banking legislation offers investors greater capital protection.
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.
