Here is what you need to know on Friday, January 21:

Safe-haven flows continue to dominate the financial markets on the last trading day of the week with global equity indexes suffering heavy losses. The Russia-Ukraine conflict, inflation fears and the US Federal Reserve's policy tightening prospects force investors to seek refuge. The US Dollar Index, which advanced to its highest level in more than a week at 95.86 on Thursday, is staying relatively calm early Friday. In the absence of high-tier data releases, the risk perception is likely to impact markets heading into the weekend.

Despite the People Bank of China's policy loosening steps, the Shanghai Composite Index is down more than 0.8% and the Nikkei Index lost 0.9% on Friday. US stocks futures indexes are down between 0.2% and 1% in the early American session. The S&P 500 Index has already lost 4% this week and the risk-sensitive Nasdaq Composite Index registered its lowest daily close since June on Thursday.

The risk-averse market environment is ramping up the demand for the risk-free US Treasury bond, allowing yields to edge lower. The benchmark 10-year US Treasury bond yield continues to edge lower toward 1.75% and is falling nearly 2% on a daily basis.

EUR/USD edged lower toward 1.1300 during the Asian trading hours on Friday but staged a modest rebound in the early European morning. The shared currency is likely to outperform its risk-sensitive rivals in the current market atmosphere and hold its ground against the greenback in the near term.

GBP/USD trades below 1.3600 early Friday after failing to stage a rebound on Thursday. The disappointing data from the UK, which showed that Retail Sales fell by 3.7% on a monthly basis in December, is making it difficult for the British pound to find demand.

Gold extended its rally toward $1,850 on Thursday but ended up closing the day in the negative territory below $1,840. Another leg lower in US T-bond yields could help the yellow metal gather strength but XAU/USD's upside could be capped amid profit-taking ahead of the weekend.

USD/JPY stays under bearish pressure with the JPY finding demand as a traditional safe haven. The pair is trading below 114.00 early Friday and remains on track to close the second straight week in the negative territory.

USD/CAD is edging higher after closing near 1.2500 for the third straight day on Thursday. The barrel of West Texas Intermediate trades in the red below $84 early Friday, making it difficult for the commodity-related loonie to stay resilient against its American counterpart. Later in the session, Statistics Canada will release November Retail Sales figures.

Bitcoin dropped below and was last seen trading at its lowest level since August at $38,600. Ethereum registered losses for the fourth consecutive day on Thursday and is already down more than 5% on a daily basis, trading near $2,800.

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures