Forex Today: Will the BoJ surprise the markets again?

The dollar traded defensively on Thursday as investors continued to wait for more clarity on President Trump’s recent announcements, particularly regarding tariffs.

Here’s what you need to know on Friday, January 24:

The US Dollar Index (DXY) pulled back noticeably, revisiting the lower end of the weekly range near 107.60 as investors continued to watch Trump’s announcements. S&P Global’s preliminary manufacturing and services PMIs will take center stage, followed by existing home sales and Michigan’s final consumer sentiment data.

EUR/USD resumed its uptrend above the 1.0400 level, quickly putting Wednesday’s setback behind it. Preliminary HCOB manufacturing and services PMIs in Germany and the Eurozone will be at the center of the debate along with speeches from ECB’s Lagarde and Cipollone.

GBP/USD saw a decent recovery towards the 1.2380 area, retesting the area of ​​recent two-week highs. CBI Distributive Trade data, GfK Consumer Confidence and S&P Global’s Advanced Manufacturing and Services PMIs will be in the spotlight across the Channel.

USD/JPY resumed its decline and once again revisited the proximity of the 156.00 region. The BoJ meeting will be the featured event, followed by the release of Japan’s inflation rate and Jibun Bank’s preliminary manufacturing and services PMIs.

AUD/USD added to Wednesday’s unresolved price action and revised the limits of the 0.6300 zone in response to the weaker tone of the Dollar.

WTI prices extended their bearish trend and approached the $74.00 per barrel level, while challenging the key 200-day SMA.

After three consecutive daily advances, gold prices traded volatile and managed to recover some of the daily losses towards the end of the day, flirting with the $2,760 zone. Silver prices fell to weekly lows near the $30.00 per ounce level, a region that also coincides with the key 200-day SMA.

Source: Fx Street

You may also like