Forex Today: US inflation takes center stage this week
|What you need to know on Tuesday, January 11:
The greenback seesawed between gains and losses, unable to find a clear direction and led by US Treasury yields once again. Market players await news about US inflation, as the country will release the final reading of the December Consumer Price Index next Wednesday, and it is expected to have been upwardly revised to 7% YoY.
Meanwhile, US Fed’s head Jerome Powell is due to testify on Tuesday on the renomination to chair the Federal Reserve Board of Governors before Senate Banking Committee. His remarks will likely be released before the event and will be closely watched for any hint on the future of monetary policy.
The EUR/USD pair trades around 1.1330, while GBP/USD hovers in the 1.3570 level, posting modest intraday losses. AUD/USD is unchanged on a daily basis, although USDCAD advanced, with the Canadian Dollar weakening alongside oil. The black gold spent the day under pressure, with WTI settling at $78.10 a barrel.
Gold, on the other hand, managed to recover some ground and trades just above the 1,800 threshold heading into the Asian opening. Nevertheless, its bullish potential remains limited.
The Japanese yen appreciated vs the dollar, with the pair currently trading at around 115.20. The sour tone of global indexes weighed on the pair as European and American indexes closed in the red.
US Treasury yields were up amid inflation-related concerns. The yield on the 10-year note touched 1.80% but currently stands at 1.77%.
Australia will publish November Retail Sales and the Trade Balance for the same month, likely to spur some action in the Asian session.
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