Forex Today: Risk aversion likely to keep leading the way

FXStreet Team FXStreet

Here is what you need to know on Monday, January 6th:

US President Trump took over twitter to respond to Iran’s revenge menace, threatening to respond “fast and hard” to any menace.
UK PM Johnson and EU Commission President, Ursula Von der Leyen, to meet this week in the UK. Speculation is that they will start discussing the post-Brexit relationship between the two economies.
During the weekend, the Chinese Central Bank stated that it will keep its monetary policy prudent, flexible, and appropriate, and continue to deepen financial reforms, repeating its well-known stance.
The USD closed the week with modest gains against high-yielding rivals, as a dismal ISM Manufacturing PMI, which fell to its lowest in over a decade, interrupted the rally triggered by risk-aversion.
Safe-haven assets soared with gold at a 6-year high and the USD/JPY hitting a 2-month low.
Crude oil prices jumped with US-Iran tensions, trading at their highest since April 2019.
Wall Street closed in the red, with worldwide equities weighed by the negative market mood.
Cryptocurrencies rallied on Friday, acting once again as safe-haven assets. Throughout the weekend, cryptos consolidated gains.

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FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.