Forex Today: US data and Trump dictate sentiment in the forex galaxy

The US dollar regained some footing and managed to put aside some of the weekly pullback as market participants continued to assess the headlines about Trump 2.0.

Here’s what you need to know on Thursday, January 23:

The US Dollar Index (DXY) regained some gains, although a move above the 108.00 barrier seemed elusive for the moment. The usual weekly initial jobless claims take center stage, followed by the EIA report on US crude oil inventories.

EUR/USD bullish momentum lost some momentum in the multi-week high area north of 1.0400. The European Commission will publish its advanced consumer confidence indicator for the month of January.

GBP/USD traded lower in response to the dollar’s modest rally. The CBI Business Optimism Index and the CBI Industry Trends Orders will be in the spotlight.

USD/JPY kept its weekly volatility well in place, this time breaking through the 156.00 barrier as investors prepared for the BoJ meeting on January 24. Trade balance results come next, followed by weekly foreign bond investment figures.

Another inconclusive session left AUD/USD hovering around the key 0.6300 zone. S&P Global’s preliminary manufacturing and services PMIs will take center stage in Australia.

WTI prices extended their decline and once again flirted with the $75.00 per barrel region as investors continued to adjust to Trump’s policies.

Gold prices advanced for the third consecutive session, surpassing $2,760 per troy ounce amid persistent uncertainty surrounding President Trump’s announcements. Silver prices found some selling pressure after failing just before the key $31.00 per ounce mark.

Source: Fx Street

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