Forex Today: Dollar eases ahead of Federal Reserve’s announcement

FXStreet Team FXStreet

What you need to know of Wednesday, January 27:

The market’s mood was sour at the beginning of the day but improved during the European session, in the detriment of the American dollar. The greenback edged lower against most major rivals, despite investors were cautious throughout the US session.

Wall Street posted a modest intraday advance, while US Treasury yields ticked higher, but held near its weekly lows.

The BOJ published the Minutes of its latest meeting and said it will remain vigilant of FX moves. Also, the ECB expressed concerns about the exchange rate and would study the impact of ECB vs Fed policy on it. Dollar’s weakness is becoming a concern, despite the economy baring quite well with the pandemic. Still, the latest macroeconomic figures coming from the country were generally discouraging.

Focus remains on US events, starting this Wednesday with the Durable Goods Orders report and the Federal Reserve announcement on monetary policy.

Coronavirus vaccines remain in the eye of the storm, amid delayed delivery. On a positive note, Pfizer announced it will look into a booster dose, one day after Moderna announced the same. Meanwhile, Johnson & Johnson said that it will publish coronavirus vaccine trial data next week and that the company is very optimistic that they will be releasing a very robust data set.

Commodity-related currencies were the best performers against the greenback, while GBP/USD flirted with the year high at 1.2745. Major pairs remained within familiar levels.

Commodities eased modestly, with gold ending the day at $1,851 a toy ounce and WTI at $52.50 a barrel.

Cryptocurrencies Price Prediction: Ripple, Chainlink & Vechain – American Wrap 26 January

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD edges higher above 0.7050 as hot CPI lifts RBA rate hike odds

The AUD/USD pair gathers strength to near 0.7055 during the Asian trading hours on Thursday. The Australian Dollar edges higher against the US Dollar as hotter inflation data bolsters expectations of Reserve Bank of Australia rate hikes. The US September Personal Consumption Expenditures inflation report will be in the spotlight later on Thursday.

USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold corrects after three-day winning streak ahead of key US data

Gold is down 0.65% to near $4,040 after failing to extend its three-day winning streak on Thursday. The precious metal comes under pressure as the US Dollar regains ground after a corrective move on Wednesday, following the Federal Reserve’s monetary policy announcement.

XRP and XLM lose ground as hawkish Fed tone weighs

Ripple (XRP) and Stellar (XLM) remain under pressure on Thursday as bearish derivatives positioning and on-chain signals weigh on sentiment. XRP slides toward key support at $1.30, while XLM gives back some of its recent gains. Meanwhile, the Federal Reserve (Fed) held interest rates unchanged at 3.75%-4.00% at its two-day October policy meeting.

Fed's recap: A cautious hold with a clear warning on inflation

The Federal Reserve (Fed) held its policy rate steady at 3.75%-4.00%, but it wasn’t a unanimous decision. Among two officials who wanted a 25-basis-point hike were Lisa Cook and Beth Hammack, while Chair Kevin Warsh said the Fed would use the coming flow of information to decide whether further action is needed. The statement presented a resilient economy.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.