Forex Today: Risk-off led the way

FXStreet Team FXStreet

Here is what you need to know on Tuesday, January 22nd:

A virus outbreak in China that can be spread between humans spurred risk aversion. China canceled the Lunar New Year´s celebrations to prevent a worldwide outbreak of the coronavirus, although there are reports that the virus has already crossed borders.
The EUR/USD pair flirted with 1.1120 on an upbeat ZEW Survey, but closed the day unchanged just below 1.1100, as the greenback recovered with Wall Street’s late slump.
GBP/USD peaked at 1.3081 after a generally better-than-anticipated UK employment report, ending the day around 1.3050 amid the dollar’s recovery in the final trading session of the day.
JPY appreciated amid risk-aversion and a mildly optimistic Kuroda.
The Australian dollar remains among the weakest currencies across the board, weighed by the negative sentiment.
European and American indexes closed in the red. Wall Street plummeted on rumors the coronavirus reached the US.
Commodities seesawed between gains and losses but finished the day with modest losses and without relevant changes.
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FXStreet Team

FXStreet

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.