Forex Today: Panic paused, concerns persist

FXStreet Team FXStreet

Here is what you need to know on Tuesday, January 7th:

The risk-off mood eased throughout the date, amid no new threats between the US and Iran and upbeat data.
Markit released the final December Composite PMI for most major economies, all of them revised higher from preliminary estimates, further helping the mood to improve.
News ahead of the US close showed that some GOP senators want to change the Senate’s rules and allow for lawmakers to dismiss articles of impeachment against President Trump before the House sends them over, according to The Hill.
UK PM Johnson announced that the UK would conduct post-Brexit trade talks with the US while it negotiates the terms of the future relationship with the EU.
Safe-haven assets were again the best performers, with gold soaring to a fresh six-year high of $1,588. They hold on to intraday gains despite giving back some ground during US trading hours.
US indexes trimmed most of their intraday losses after risk-off was offset by upbeat US data.
Crypto Today: Bitcoin bulls tackling big $7500 barrier

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EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.