Forex Today: Risk aversion leads the way, dollar firmer

Here is what you need to know on Monday, January 18:

The dollar strengthened on the back of a dismal market mood. Poor US employment and retail sales data spurred the sour sentiment, which extended into the weekly close. The greenback posted substantial gains against most of its major rivals.

Concerns were triggered by a delay in the Pfizer’s vaccine distribution in Europe, which revived concerns about economic progress within the pandemic context. Wall Street closed in the red, US Treasury yields edged lower.

The EUR/USD pair fell sub-1.2100, while GBP/USD settled below 1.3600. Commodity-linked currencies also lost ground but were somehow resilient to the dollar’s demand and falling equities.

On Saturday, Prime Minister Boris Johnson announced additional restrictive travel measures on Friday, to protect “against the risk of as yet unidentified new strains.” The UK will close all travel corridors starting this Monday, and anyone flying into the country will need to provide a negative coronavirus test.

Gold plunged on renewed interest for the dollar, posting its lowest settlement in a month at $1,827.80 a troy ounce. Crude oil was also affected, with WTI closing the week at $52.00 a barrel.

Top 3 Losers Of The Week Litecoin, Bitcoin Cash, EOS: Dips offer opportunities to enter bull markets

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD breaks through critical 0.8000 level, fresh three-year highs

AUD/USD rides the reflation wave higher. The aussie reaches the highest since February 2018. Surge in commodities complex underpins the AUD.


EUR/USD hits six-week high amid risk-on mood

EUR/USD has risen above 1.22, hitting the highest since mid-January. The US Fed's commitment to easing has boosted the market mood and the safe-haven dollar is down despite higher US yields. A big bulk of US data including GDP awaits traders.


Dogecoin on the verge of a 75% lift-off

Dogecoin price has been lull ever since the local top on February 7. However, a 20% surge due to Elon Musk’s recent endorsement has led to a breakout from a bull flag pattern. Now, the meme coin could surge 75% to record levels soon. 

Read more

Gamestop (GME) Stock Price and Forecast: Soars 273% as “diamond hands” trigger meme stock comeback

NYSE: GME is trading at around $168 in Thursday's premarket trade, up 273% from Wednesday's early trading price. The departure of the CFO served as the trigger to the fresh buying frenzy. Retail traders that have held onto shares seem to be behind the surge. 

Read more

US Dollar Index looks depressed near 90.00 ahead of data

The US Dollar Index (DXY), which tracks the greenback vs. a bundle of its main rivals, remains under heavy pressure around the key 90.00 neighbourhood in the second half of the week.

US Dollar Index News