Forex Today: Dollar to keep on rallying, beware of oil

FXStreet Team FXStreet

Here is what you need to know on Monday, January 20th:

The American dollar extended its gains on Friday, ending the week at highs against most major rivals, despite US data missed the market’s expectations. The EUR/USD pair settled below 1.1100.

UK Retail Sales came in well below expected, hurting Sterling against most major rivals and lifting odds of a BOE’s rate cut. December Retail Sales were down by 0.6% MoM, well below the 0.7% advance expected, while core sales printed at -0.8%. When compared to a year earlier, sales were up by 0.9%, missing the market’s forecast of 2.6%. GBP/USD settled just above the 1.3000 figure.

During the weekend, the PBOC announced it pumped 200 billion yuan into the financial system in an attempt to maintain liquidity in the banking system before the Spring Festival.

Chinese GDP met the market’s expectations, up by 6.0% in Q4. Retail Sales and Industrial Production were upbeat.

Wall Street continues rallying to record highs.

Crude oil prices closed the week little changed but could jump higher at the weekly opening amid news indicating that Libyan commander Khalifa Haftar blocked oil exports at ports under his control, cutting Libyan exports by 800,000 barrels per day.

Gold prices remained stable, with spot around $1,550 a troy ounce.

Cryptocurrencies traded with a positive tone throughout the weekend, although there was no major breakout of critical levels.

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FXStreet Team

FXStreet

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.