Forex Today: Trade optimism lifts mood, pound pressured by the BOE, Iran still eyed

Here is what you need to know on Monday, January 13:

The mood in financial markets is upbeat as Chinese Vice Premier Liu He leads a delegation to Washington. He is set to sign Phase One of the trade deal and investors are already eyeing the second phase. Markets are awaiting the details of the accord. Steven Mnuchin, the US Treasury Secretary, has suggested reviving the Bush-era strategic talks with Beijing. Commodity currencies are on the rise and the yen remains under pressure. 

The British pound is under pressure after Gertjan Vlieghe, a member of the Bank of England, opened the door to cutting interest rates – data-dependent. His comments join dovish remarks from Governor Mark Carney and keep the pressure on sterling. 

UK monthly Gross Domestic Product data for November is set to show a second consecutive month of stagnation. 

The greenback remains under pressure after unimpressive jobs report for December. The world's largest economy gained only 145,000 jobs and wage growth decelerated to 2.9%. Later this week, inflation, retail sales, and consumer confidence are awaited. See US Job creation slows in 2019 on manufacturing decline and trade

Iran: Protests have rocked the Middle-Eastern nation after the leadership admitted to shooting down the Ukranian passenger plane that crashed last week. Iranian-backed Iraqi militias have vowed to take revenge after the killing of some of their leaders. Tensions remain elevated and oil prices may react to the news.

The Canadian dollar is holding onto gains after a better-than-expected jobs report. The Bank of Canada is scheduled to release its quarterly Business Outlook Survey later today.

Cryptocurrencies have been looking for a new direction with Bitcoin hovering above $8,000.

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 holds higher ground above 0.7300

AUD/USD extends gains above 0.7300 amid fresh US dollar selling across the board, as the market sentiment remains mixed starting out a fresh week.  PBOC's status-quo and the rally in copper prices bode well for the aussie. 


USD/JPY extends losses below 104.50 amid risk-aversion

USD/JPY resumes its decline towards 104.00 amid risk-off action in the Asian equities and broad dollar weakness. Markets in Tokyo are off for Respect-for-the-Aged Day, Focus shifts to the Fed Chair Powell's speech. 


Gold due for a breakout, according to key indicator

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. The yellow metal has carved out a descending triangle pattern over the past four weeks.

Gold News

The week ahead: Central bankers’ chance to explain themselves

Global equities took another hit at the end of last week, and as we start a fresh week there is some concern that volatility could be creeping back into the markets and that tech has lost some of its lustre, along with gold, which also ended the week lower. 

Read more

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News