Forex Today: Tariffs weigh on markets, pound recovers ahead of data, Bitcoin takes a breather

Here is what you need to know on Wednesday, January 15:

Trade: The US will maintain most of the tariffs it has slapped on China at least until November – when the US elections are due. The market mood has worsened and the yen recovered on fears that Phase One of the trade deal – due to be signed today – will not be helpful enough to the global economy. Also, the administration is set to tighten pressure on Huawei, China's telecom giant. 

US-EU trade: The European Commission's Phil Hogan continues trade talks in Washington after the first day of negotiations ended without a breakthrough. 

GBP/USD has been recovering and recaptured at 1.30. The Bank of England's Michael Saunders – a hawk turned dove – will speak early in the day and may join the calls for cutting rates. The UK then releases inflation figures for December, with the headline Consumer Price Index expected to remain unchanged at 1.5%. See UK inflation: Cementing the rate cut or triggering a GBP/USD correction? Three scenarios

US data: The US Producer Price Index is due out today after CPI came out at 2.3% on the headline and on the core. See US inflation reinforces the Fed neutral policy. The administration is considering disallowing reporters in the lockup room to use computers for preparing their news stories, potentially delaying the publication.

Federal Reserve members Patrick Harker and Robert Kaplan – both voters in 2020 – will speak today and will likely reaffirm the bank's neutral stance.

US politics: Nancy Pelosi, Speaker of the House, will send the Articles of Impeachment to the Senate, setting the stage for a trial for President Donald Trump. The chances of ousting him are low. Democratic presidential hopefuls battled it out in another televised debate ahead of the Iowa caucuses. Joe Biden, former Vice President, remains the frontrunner. 

Iran: While tensions with the US have eased, the European signatories of the nuclear deal are set to introduce new sanctions, trying to bring the Middle-Eastern nation back to compliance. 

Cryptocurrencies have been retreating from the highs, with Bitcoin consolidating around $8,600, and Ethereum above $160. Dash stands out with a leap of over 30%.