Forex Today: Risk aversion fuels dollar’s advance

FXStreet Team FXStreet

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

On Sunday, the Chinese Health Commission reported that the coronavirus transmission ability is getting stronger and that infections could continue to rise. Financial markets reflected the concerns related to the virus outbreak, with safe-haven assets gapping higher. The dollar appreciated against most major rivals but those considered a refugee in turmoil times.
EUR/USD neared 1.1000 as the German IFO Survey missed the market’s expectations in January, combining with the broad dollar’s strength.
GBP/USD peaked at 1.3105 but eased ahead of critical events in the UK later this week. The BOE will meet on Thursday, and there are chances that Governor Carney may cut rates before leaving his seat. Brexit is scheduled for this Friday.
The Japanese yen was the strongest, the AUD the weakest in a risk-averse environment.
Gold gapped higher and held on to gains, finishing the day around $1,580 a troy ounce.
Crude oil prices were also under pressure, ending the day at 3-month lows amid dollar’s strength, fears of an oversupplied market.
Crypto Today: Bitcoin bulls break back above critical $8500 barrier

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FXStreet Team

FXStreet

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

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Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.