Forex Today: The ECB takes centre stage… and US GDP
|The re-emergence of the appetite for the risk complex weighed on the Dollar and lifted EUR/USD past 1.0900. The prevailing bullish sentiment was also supported by news of further stimulus in China by the PBoC as well as auspicious prints from preliminary PMIs in Europe and the US.
Here is what you need to know on Thursday, January 25:
The risk-on trade forced the USD Index (DXY) to test the region below the key 103.00 support, although higher yields sparked a bounce in the index afterwards. Moving forward, the Q4 flash GDP Growth Rate will be in the spotlight on Thursday, along with the usual weekly Initial Claims and Durable Goods Orders.
In Europe, EUR/USD surpassed the 1.0900 hurdle and reached fresh multi-day highs, although the move fizzled out towards the end of the NA session. On Thursday, the ECB takes centre stage and is expected to leave its rates unchanged. President Lagarde is also seen reinforcing the case of a rate cut in the summer.
GBP/USD maintained the erratic performance and faded Tuesday’s retracement, managing to reclaim the area beyond 1.2700 the figure on the back of the risk-on sentiment.
USD/JPY bounced off multi-session lows near 146.60, regaining the 147.00 barrier and above amidst higher US and Japanese yields. Next on tap in the domestic docket is the weekly Foreign Bond Investment.
AUD/USD continued to navigate without a clear direction and retreated to the 0.6580 zone after climbing to weekly highs around 0.6620 during early trading. The AUD found support in the PBoC stimulus, higher copper prices, and the bearish tone in the greenback.
USD/CAD advanced to four-day peaks north of the 1.3500 barrier as investors assessed the BoC’s decision to keep rates unchanged for the fourth meeting in a row. Governor Macklem suggested that any discussion on rate cuts is premature.
A larger-than-expected drop in US crude oil supplies and Chinese stimulus helped the barrel of WTI reach a new four-week top near the $76.00 mark.
Gold prices slipped back to the $2010 region on the back of a rising appetite for risk-linked assets, while Silver saw its price edge higher and flirt with the $23.00 mark per ounce, or six-day highs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.