What you need to know on Thursday, January 20:
Demand for the American dollar eased on Wednesday, with the currency edging lower against most major rivals. Losses were limited across the FX board, with gold outstanding amid rallying beyond $1,840 a troy ounce, its highest since last November.
US Treasury yields inched higher at the beginning of the day to reach fresh 2-year highs but ended the day lower. The yield on the 10-year US Treasury note peaked at 1.902% and currently stands at 1.83%. Fears that inflation will force central banks into tighter monetary policies regardless of economic growth led the way.
Meanwhile, stocks traded with a sour tone in Asia but were up during London trading hours, pushing Wall Street’s futures up. US indexes lost momentum through the session, ending the day mixed and not far from their opening levels.
The EUR/USD pair recovered towards the current 1.1340/50 price zone after Germany confirmed inflation at a multi-decade high of 5.3% in December. GBP/USD trades around 1.3620 after UK inflation posted a whopping 5.4% YoY by the end of 2021.
The aussie advanced vs the greenback, ending the day around 0.7230, while the USD/CAD ended the day little changed in the 1.249’ price zone.
Safe-haven currencies were little changed vs their American rival, with USD/JPY trading marginally lower around 114.25.
Risk-off persists heading into the US Federal Reserve’s monetary policy announcement next week, with investors turning cautious ahead of the event. Volatility may decrease while the dollar may remain under mild pressure.
Crude oil prices kept rallying. The black gold reached levels that were last seen in September 2014, with WTI currently trading at $85.90 a barrel.
Australia will publish inflation and employment-related figures early on Thursday, while later into the day, the Turkey Central Bank will announce its monetary policy decision.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.