Here’s what you need to know on Tuesday, January 21:
After falling sharply on the first trading day of the week, the US Dollar Index (USD) benefits from deteriorating risk sentiment and gains bullish momentum on Tuesday. The European economic agenda will include data from the ZEW Survey – Economic Sentiment for Germany and the Eurozone. Later in the day, investors will closely monitor Canada’s December Consumer Price Index (CPI) data.
US Dollar PRICE Today
The table below shows the percentage change of the US Dollar (USD) against major currencies today. US dollar was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.38% | 0.42% | -0.09% | 0.91% | 0.57% | 0.61% | 0.21% | |
| EUR | -0.38% | 0.04% | -0.42% | 0.52% | 0.20% | 0.23% | -0.19% | |
| GBP | -0.42% | -0.04% | -0.50% | 0.48% | 0.15% | 0.19% | -0.22% | |
| JPY | 0.09% | 0.42% | 0.50% | 0.97% | 0.64% | 0.66% | 0.27% | |
| CAD | -0.91% | -0.52% | -0.48% | -0.97% | -0.33% | -0.29% | -0.70% | |
| AUD | -0.57% | -0.20% | -0.15% | -0.64% | 0.33% | 0.03% | -0.37% | |
| NZD | -0.61% | -0.23% | -0.19% | -0.66% | 0.29% | -0.03% | -0.41% | |
| CHF | -0.21% | 0.19% | 0.22% | -0.27% | 0.70% | 0.37% | 0.41% |
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).
During the early trading hours of Monday’s American session, reports that US President Donald Trump would refrain from announcing tariffs on the first day of his inauguration ceremony sparked selling pressure on the USD. Later in the day, Trump said they could impose tariffs on China if they make a deal with TikTok and China doesn’t approve it. Additionally, he noted that they are thinking about putting a 25% tariff on imports from Mexico and Canada, which triggered a USD rally in Asian trading hours on Tuesday.
The UK’s Office for National Statistics reported on Tuesday that the ILO unemployment rate rose to 4.4% in the three months to November from 4.3%. Other details from the employment report showed that the change in employment was +35K in the same period. Finally, wage inflation, measured by the change in average earnings including bonuses, rose to 5.6% from 5.2%, as expected. He GBP/USD It showed no immediate reaction to these figures and was last seen trading in negative territory below 1.2300.
After losing more than 1% on Monday, the USD/CAD reversed direction and touched its highest level since March 2020 above 1.4500 in the Asian session on Tuesday before correcting lower towards 1.4450. On an annual basis, the CPI in Canada is expected to rise 1.8% in December, slightly below the 1.9% increase recorded in November.
He USD/MXN turned higher as Trump’s tariff comments weighed heavily on the Mexican peso. The pair was last seen gaining over 1% on the day at 20.7640.
He EUR/USD posted strong gains on Monday but lost traction early Tuesday. At press time, the pair was down around 0.4% on the day at 1.0375.
He Gold It closed marginally higher on Monday and gained bullish momentum early on Tuesday. XAU/USD was last seen trading at its strongest level since early November above $2,725.
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 “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.
