Forex Today: Markets shift the attention to US data ahead of the Fed

Pablo Piovano FXStreet

The US Dollar began the new trading week on the back foot as market participants continued to digest the narrative of further tariffs from the Trump administration, while investors started gearing up for the FOMC meeting on Wednesday.

Here is what you need to know on Tuesday, January 28:

The US Dollar Index (DXY) printed moderated losses, although it managed to regain some traction after bottoming out near 107.00. Durable Goods Orders will be released in the first turn, seconded by the FFA’s House Price Index, the Conference Board’s Consumer Confidence, and the Richmond Fed Manufacturing index, all ahead of the API’s weekly report on US crude oil inventories.

EUR/USD rose to fresh yearly peaks around 1.0530 on the back of the offered stance in the Greenback, just to reverse part of those gains towards the end of the day. The ECB’s Cipollone and Lagarde are due to speak.

GBP/USD alternated gains with losses around 1.2480 following an early move beyond the 1.2500 milestone. The BRC Shop Price Index should give a view of how inflation pressure fared in the first month of the year.

USD/JPY retreated sharply to six-week lows near 153.70 on the back of investors’ repricing of further tightening by the BoJ. The publication of the BoJ Minutes will be the next salient event in Japan on January 29.

AUD/USD suffered the disheartening prints from the Chinese PMIs over the weekend and deflated to the sub-0.6300 region on Monday. Next on tap in Oz will be the release of the Business Confidence gauge by NAB.

WTI remained well on the defensive and flirted with the area of yearly lows near the $72.00 mark per barrel on the back of steady uncertainty surrounding President Trump’s tariffs plans.

Gold prices corrected lower from the vicinity of their all-time peaks seen last Friday and retested the area of multi-day lows near $2,730 per ounce troy. Silver prices followed suit and traded at shouting distance from its key 200-day SMA around the $30.00 mark per ounce.

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.

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