Here's what you need to know to trade today Wednesday January 24:
After Tuesday's hectic day, financial markets remain relatively calm early Wednesday. S&P Global will publish the Manufacturing and services PMIs for Germany, the euro zone, the United Kingdom and the United States. During the American session, the Bank of Canada (BoC) will announce its monetary policy decision.
The US dollar was under downward pressure early on Tuesday, and the DXY Dollar Index fell below 103.00 for the first time in a week during the European session. The negative shift seen in risk sentiment, reflected in Wall Street's bearish opening, helped the DXY index gain traction in the second half of the day. However, a late recovery in technology stocks limited the dollar's gains. Early on Wednesday, the 10-year US Treasury bond yield continues to move sideways above 4% and US stock index futures are trading slightly higher.
Dollar Quote this week
The following table shows the percentage change of the United States Dollar (USD) against the main currencies this week.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.22% | -0.06% | 0.19% | 0.27% | -0.26% | 0.18% | 0.07% | |
| EUR | -0.23% | -0.31% | -0.04% | 0.04% | -0.49% | -0.05% | -0.15% | |
| GBP | 0.05% | 0.30% | 0.24% | 0.35% | -0.19% | 0.25% | 0.15% | |
| CAD | -0.19% | 0.04% | -0.26% | 0.07% | -0.45% | 0.00% | -0.09% | |
| AUD | -0.25% | -0.01% | -0.33% | -0.05% | -0.51% | -0.07% | -0.12% | |
| JPY | 0.26% | 0.49% | 0.24% | 0.37% | 0.51% | 0.46% | 0.33% | |
| NZD | -0.17% | 0.07% | -0.25% | 0.01% | 0.08% | -0.44% | -0.08% | |
| CHF | -0.09% | 0.14% | -0.17% | 0.09% | 0.12% | -0.30% | 0.06% |
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).
The Bank of Canada is expected to keep its interest rate at 5% after the January monetary policy meeting. Governor Tiff Macklem will discuss the policy outlook and answer questions at a press conference beginning at 15:30 GMT. After Monday's rebound, the USD/CAD found resistance around 1.3500 and closed in negative territory on Tuesday. The pair remains stable around 1.3450 during the European morning.
He EUR/USD rose above 1.0900 in the European session on Tuesday, but reversed direction in the second half of the day and hit its lowest level in more than a month near 1.0820. The pair has seen a technical correction during the Asian session and is now trading within a tight range above 1.0850.
After approaching 1.2750, the GBP/USD turned downward and posted marginal losses on Tuesday. Early on Wednesday, the pair remains above 1.2700.
Data from Australia has shown that Judo Bank Composite PMI Improved up to 48.1 in January from 46.9 in December. He AUD/USD ignores this data and moves sideways below 0.6600.
He New Zealand Consumer Price Index up 4.7% year-on-year in the fourth quarter, after the 5.6% increase registered in the previous quarter. This reading was in line with market expectations and did not provoke a notable reaction. At the time of writing, the pair NZD/USD remains practically unchanged near 0.6100.
After the sharp drop registered in the first hours of the European session on Tuesday, the USD/JPY turned higher and erased its daily losses. The pair struggled to retain its bullish momentum and retreated below 148.00 early on Wednesday.
For the fourth consecutive day of trading, the price of Gold failed to make a decisive move in either direction on Tuesday. In the European morning on Wednesday, XAU/USD continues to move up and down in a tight range above $2,020.
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.
