Forex Today: Markets rally as US-EU tensions ease, Gold hits record high
Risk aversion eased after US President Donald Trump reiterated that he had agreed with NATO on “the framework of a future deal with respect to Greenland”. Trump and NATO Secretary General Mark Rutte spoke in Switzerland.
USD/JPY retreats amid US Dollar weakness, BoJ decision and Japan CPI in focus
The Japanese Yen (JPY) regains some ground against the US Dollar (USD) on Thursday, with USD/JPY edging lower amid broad weakness in the Greenback. At the time of writing, the pair is trading around 158.30, retreating from one-week highs touched earlier in the European session.
Gold hits record above $4,900 as rally extends despite risk-on mood
Gold (XAU/USD) surges for the fourth consecutive trading day on Thursday, hitting a fresh record high of $4,906, even as risk appetite improved and tensions between the US and Europe eased, following an agreement over Greenland. At the time of writing, XAU/USD trades at $4,903, up 1.60% in the day.
United States EIA Crude Oil Stocks Change above expectations (1.1M) in January 16: Actual (3.602M)
United States EIA Crude Oil Stocks Change above expectations (1.1M) in January 16: Actual (3.602M)
EUR/USD edges higher as weaker US Dollar offsets solid US data
The Euro (EUR) edges higher against the US Dollar (USD) on Thursday, supported by a broadly weaker Greenback as traders shrug off solid US economic data. At the time of writing, EUR/USD is trading around 1.1742, reversing the previous day’s losses.
United States 4-Week Bill Auction climbed from previous 3.595% to 3.63%
United States 4-Week Bill Auction climbed from previous 3.595% to 3.63%
United States Kansas Fed Manufacturing Activity climbed from previous -3 to -2 in January
United States Kansas Fed Manufacturing Activity climbed from previous -3 to -2 in January
United States EIA Natural Gas Storage Change below expectations (-90B) in January 16: Actual (-120B)
United States EIA Natural Gas Storage Change below expectations (-90B) in January 16: Actual (-120B)
United States Personal Income (MoM) below expectations (0.4%) in November: Actual (0.1%)
United States Personal Income (MoM) below expectations (0.4%) in November: Actual (0.1%)
United States Personal Consumption Expenditures – Price Index (MoM) meets forecasts (0.2%) in November
United States Personal Consumption Expenditures – Price Index (MoM) meets forecasts (0.2%) in November
United States Core Personal Consumption Expenditures – Price Index (MoM) in line with expectations (0.2%) in November
United States Core Personal Consumption Expenditures – Price Index (MoM) in line with expectations (0.2%) in November
Eurozone Consumer Confidence increased to -12.4 in January from previous -13.1
Eurozone Consumer Confidence increased to -12.4 in January from previous -13.1
Gold nears record high as traders weigh US data and geopolitics
Gold (XAU/USD) trims earlier losses on Thursday as traders digest a heavy slate of US economic data. At the time of writing, XAU/USD trades around $4,870, up nearly 0.80% after a short-lived dip below the $4,800 psychological level.
GBP/USD: Likely to range-trade between 1.3400 and 1.3460 – UOB Group
Pound Sterling (GBP) is likely to range-trade between 1.3400 and 1.3460. In the longer run, the near-term bias is tilted to the upside, but GBP may not break above 1.3505, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
USD/CAD Price Forecast: Seems vulnerable above 1.3800; US PCE Price Index in focus
The USD/CAD pair struggles to capitalize on the overnight bounce from the 1.3785 region, or the 50% Fibonacci retracement level of the December-January upswing, and trades with a negative bias for the fourth straight day on Thursday.
AUD/USD rallies further to near 0.6800 on strong Aussie employment data
The AUD/USD pair extends its winning streak for the fourth trading day on Thursday, trading 0.6% higher to near 0.6810 during the European trading session. The Aussie pair gains further as the Australian Dollar (AUD) outperforms its peers, following the release of the employment data for December.
United Kingdom Public Sector Net Borrowing above forecasts (£13.5B) in December: Actual (£16.908B)
United Kingdom Public Sector Net Borrowing above forecasts (£13.5B) in December: Actual (£16.908B)
WTI price steadies above $60.50 as geopolitical relief offsets oversupply concerns
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.60 during the early European trading hours on Thursday. The WTI price holds steady amid cooling geopolitical tensions over Greenland and oversupply concerns.
GBP/JPY rises to near 213.00 as Yen underperforms ahead of BoJ’s policy
The GBP/JPY pair trades 0.22% higher to near 213.10 at the start of the European trading session on Thursday. The pair gains as the Japanese Yen (JPY) underperforms across the board ahead of the monetary policy announcement by the Bank of Japan (BoJ) on Friday.
EUR/JPY Price Forecast: Gathers strength to near 185.50, BoJ rate decision looms
The EUR/JPY cross attracts some buyers near 185.45 during the early European trading hours on Thursday. The Japanese Yen (JPY) strengthens against the Euro (EUR) on improved sentiment.