|

Forex Today: It is not the Fed’s decision, it is the message

The US Dollar regained balance and rebounded sharply, helped by the modest rebound in US yields and another tariffs story, all ahead of the key FOMC event on Wednesday.

Here is what you need to know on Wednesday, January 29:

The US Dollar Index (DXY) rose to two-day highs just above the 108.00 yardstick following the resumption of a strong buying interest in the Greenback. The FOMC meeting will be the salient event, seconded by weekly Mortgage Applications, Wholesale Inventories, and the advanced Goods Trade Balance prints.

EUR/USD tumbled to two-day lows and threatened to breach the 1.0400 support on the back of the strong bid bias in the Greenback. Germany’s Consumer Confidence tracked by GfK will be released, followed by the ECB’s M3 Money Supply, Loans to Companies and Loans to Households figures.

GBP/USD followed its risk-peers and deflated to weekly lows near the 1.2400 mark following the strong bounce in the US Dollar. The BoE’s A. Bailey is due to speak in an otherwise empty UK docket.

USD/JPY reversed three daily advances in a row, briefly flirting with the key resistance at the 156.00 yardstick. The publication of the BoJ Minutes is next in the Japanese calendar along with the Consumer Confidence gauge.

AUD/USD added to Monday’s deep pullback and clinched multi-day lows near 0.6230. Quarterly Inflation Rate and the RBA’s Monthly CPI Indicator are expected to be key in light of the RBA meeting in February.

WTI managed to advance modestly on the back of crude oil supply disruption in Libya, bouncing off recent lows and regaining the $73.00 mark and beyond per barrel.

Gold prices met some support in the better tone in global equities following Monday’s DeepSeek-led pronounced sell-off, advancing past the $2,760 mark per ounce troy. Silver followed its cousin’s steps, reversing Monday’s decline and bouncing off the sub-$30.00 mark per ounce to clock decent gains.

Author

Pablo Piovano

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

More from Pablo Piovano
Share:

Editor's Picks

AUD/USD consolidates above 0.7200 after hot Chinese CPI data

AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data. Meanwhile, rising RBA rate-hike bets act as a tailwind for the Aussie amid Yen-inspired US Dollar weakness. Traders await the release of US inflation figures later in the week for fresh impetus.

USD/JPY stays in red near 153.50 amid aggressive BoJ hike bets

USD/JPY keeps the bearish tone intact at around 153.50 during European trading hours on Wednesday. A strong Reuters Tankan business survey adds to the case for continued BoJ policy normalisation and supports the Japanese Yen. This, along with a broadly weaker US Dollar, keeps the pair close to a nearly seven-month low set on Tuesday.

Gold bounces up to $4,400 with the bearish trend intact

Gold trims losses with price action returning to the $4,400 area during the European morning session, after bouncing from $4,345 lows on Tuesday. The precious metal is drawing support from broad-based US Dollar weakness, although the broader trend remains bearish, after losing more than $100 in the previous three trading days.

Pi Network's rebound holds as momentum improves

Pi Network (PI) extends its recovery on Wednesday, trading above $0.098 after finding support around the 50-day Exponential Moving Average earlier this week. The rebound comes as the Pi Core Team highlights the importance of strengthening its developer ecosystem to expand application-level utility across the network.

Oil, Apple and JPY in focus
Oil prices are rising on Wednesday as tit-for-tat strikes between Iran and the US threaten oil supplies as the two sides battle for control of the Strait of Hormuz. Stock futures have switched their attention from a strong earnings season to the challenges ahead, including a 10-year Treasury yield that is hovering close to the 4.8% level.
Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.