Forex Today: Data, FOMC should rule the sentiment

Pablo Piovano FXStreet

Another firm session of the Greenback put the risk complex under further pressure, sending the USD Index (DXY) to flirt with the upper end of the recent range and EUR/USD to the sub-1.0800 region, all amidst the emergence of usual pre-FOMC cautiousness.

Here is what you need to know on Tuesday, January 30:

The US Dollar Index (DXY) kicked off the new trading week on a robust note, surpassing the 103.80 level ahead of the FOMC gathering and the publication of the Nonfarm Payrolls. However, before those key events emerge, the FHFA’s House Price Index and the Consumer Confidence gauge by the Conference Board are both due on January 30.

EUR/USD accentuated its bearish feeling and broke below the 1.0800 support level to print fresh multi-week lows at the beginning of the week. In the euro docket, the advanced Q4 GDP Growth Rate in Germany and the broader Euroland will take centre stage on January 30.

Across the Channel, Mortgage Approvals and Mortgage Lending figures are due on Tuesday. GBP/USD clinched its third consecutive daily pullback on Monday in response to the solid price action around the greenback.

USD/JPY came under renewed downside pressure following two daily advances in a row and broke below the 148.00 level. The release of the December Unemployment Rate will be the salient event in “The Land of the Rising Sun” on January 30.

Positive prospects from news citing extra stimulus in China continued to prop up the mood around the Aussie dollar, motivating AUD/USD to start the week with decent gains, although still capped by the 0.6600 barrier. On Tuesday, Retail Sales prints should gather all the attention Down Under.

While unabated geopolitical concerns bolstered crude oil prices, demand concerns stemming mainly from China, as well as the potential tighter-for-longer stance by the Fed and the ECB, eventually dragged the commodity to the negative zone on Monday.

Declining US yields encouraged Gold prices to resume their upside, while Silver climbed to multi-day highs backed by China’s stimulus.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD remains offered; bears target 1.3600

GBP/USD now leaves behind part of its recent recovery and revisits the low 1.3600s at the beginning of the week. Indeed, Cable trades with a mild downward bias amid decent gains in the Greenback as investors remain wary of upcoming US data releases and the Jackson Hole event.

EUR/USD remains sidelined above 1.1650

EUR/USD trades on the defensive following the closing bell on Wall Street on Monday, hovering around the 1.1660 region and adding to Friday’s small decline. The pair’s pullback comes in response to an acceptable rebound in the US Dollar in a context of generalised caution ahead of key US data releases and Chair Warsh’s speech in Jackson Hole.

Gold poised to extend its bullish run

Gold surrenders part of its initial advance, although it keeps its bullish pace well and sound above the $4,600 mark per troy ounce on Monday. The precious metal’s move higher comes despite slight gains in the US Dollar and a modest pullback in US Treasury yields across the curve.

XRP surged 72%, but is the rally really about XRP?

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Convulsion in credit markets

The United States government just posted a $432.3 billion deficit for July, the largest monthly shortfall since March of 2021. That single burst of red ink pushed the yeartodate deficit to $1.8 trillion, with two months still remaining in fiscal 2026. At this pace, Washington will soon wax nostalgic for the “good old days” when annual deficits were only $2 trillion.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.