The EUR/USD pair finally woke up from its over-a-month lethargy, surging to 1.1482 and ending the week a handful of pips below the level. The American Dollar collapsed against all of its major rivals, and the catalyst was US inflation. The Consumer Price Index was confirmed at 7% YoY in December, its highest since 1982.

How low can the dollar go? The greenback tumbled in response to soothing words from the Federal Reserve and falling bond yields, an indirect result of warning words from other Fed officials. The focus now shifts to the UK, with economic indicators competing with the political drama. 

The USD/JPY shed its remaining 2022 gains this week as markets look ahead to the spring’s anticipated economic revival. American inflation, while at a four-decade record in December, was not enough to force Treasury rates higher. 

 The AUD/USD pair reached 0.7313, a fresh two-month high, but trimmed part of its weekly gains to settle in the 0.7240 price zone. The poor performance of Wall Street, particularly on Friday, undermined demand for the pair, although the broad dollar’s weakness kept it on the winning side.

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Following the previous week’s sharp decline, gold started the new week on a firm footing and staged a recovery toward $1,800. With buyers managing to lift the precious metal above that key resistance area, XAU/USD extended its rally toward $1,830 before going into a consolidation phase in the second half of the week.