TRENDING:

GBP/USD

XAU/USD

Forex Today: 2020 kicks off with the dollar recovering amid Chinese RRR cut, trade optimism

Yohay Elam FXStreet

Here is what you need to know on Thursday, January 2, 2020:

China announced a 50 basis point cut to its Reserve Requirement Ratio (RRR) on New Year's Day, unleashing over $100 billion in liquidity. Markets are cheering the move, which authorities had hinted to. The Caixin Manufacturing Purchasing Managers' Index ticked down to 51.5, still reflecting growth.

The US Dollar is recovering some of the ground it lost in the dying days of 2019, with EUR/USD slipping toward 1.12, GBP/USD pressured toward 1.32, and AUD/USD dipping under 0.70. The move seems to be related to profit-taking.

Trade: Ahead of the holiday, President Donald Trump announced that the US and China will sign Phase One of the trade deal on January 15. Further talks will begin afterward.

Final manufacturing PMIs are due out today in Europe and in the UK. The industrial sector has been struggling.

Oil prices are off the highs despite higher tensions between the US and Iran. Protesters stormed the American embassy in Baghdad after a US strike on Iranian-backed militias in Iraq.

Cryptocurrencies kicked off 2020 on the back foot, with Ripple coming under pressure as around one billion tokens are released to the market.

EUR/USD in 2020: Lean times soon to turn into flush times for euro dollar
GBP/USD in 2020: Pound may continue to fall on hard Brexit deadline
USD/JPY in 2020: A journey from trade fears to high-stakes election

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD trades around 1.1700 after rebounding from 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1700 during the Asian hours on Wednesday. On the daily chart, technical analysis indicates a potential for a bearish bias; the 14-day Relative Strength Index at 47 confirms waning momentum.

GBP/USD climbs above 1.3500 as US Dollar weakens ahead of ISM Services PMI

GBP/USD gains some ground after registering modest gains in the previous session, trading around 1.3510 during the Asian hours on Wednesday. The pair edges higher as the US Dollar struggles ahead of the US ISM Services Purchasing Managers’ Index and JOLTs job openings due later in the day.

Gold pulls back from $4,500 amid profit-taking ahead of key US macro data

Gold struggles to capitalize on its strong weekly gains registered over the past two days and faces rejection near the $4,500 psychological mark, or over a one-week high touched during the Asian session on Wednesday. As investors digest the recent US attack on Venezuela, the prevalent risk-on environment prompts some profit-taking around the commodity.

Bitcoin, Ethereum and Ripple cool off as rally stalls near key resistance zones

Bitcoin, Ethereum, and Ripple prices are taking a breather on Wednesday near their key resistance levels following the recent surge. BTC faces rejection at the $94,253 level, while ETH and XRP follow BTC’s footsteps, struggling near $3,308 and $2.35, respectively.

Implications of US intervention in Venezuela

Events in Venezuela are top of mind for market participants, and while developments are associated with an elevated degree of uncertainty, we are not making any changes to our markets or economic forecasts as a result of the deposition of Nicolás Maduro.

Aave Price Forecast: AAVE eyes bullish breakout as on-chain and derivatives data turns supportive

Aave (AAVE) price hovers around $172 on Wednesday, nearing the upper trendline of the falling parallel channel pattern. A break above this technical pattern favors the bulls.

Legal Text

Markets move fast. We move first.

Editor's Picks

Best Brokers in 2026