Forex Today: Trade optimism sends USD/JPY above 110, cryptos climb, US inflation eyed

Yohay Elam FXStreet

Here is what you need to know on Tuesday, January 14:

Trade deal: Ahead of the Sino-American signing ceremony on Wednesday, the US dropped its tagging of China as a currency manipulator. The Chinese yuan shot higher and the upbeat mood weighed on the Japanese yen, pushing it above 110.

Investors are also encouraged by Beijing's trade balance report, which showed an increase in exports in 2019 despite the trade war and an 11% drop in commerce with the US.

EU-US trade: The European Commission's Phil Hogan heads to Washington for official trade talks with the world's largest economy. Some fear US tariffs may hurt meager growth in the old continent. Hogan's boss, EC President Ursula von der Leyen will unveil an ambitious European Green New Deal.

Fed: Raphael Bostic, President of the Atlanta branch of the Federal Reserve, has said that monetary policy is appropriate, with no need for changes. His words echo those of his peers. John Williams of the New York Fed speaks later.

The focus later shifts to the data, with the Consumer Price Index report for December. Core CPI is expected to remain at 2.3% yearly. Preview: The inflation sideshow

Cryptocurrencies have shot higher overnight, with Bitcoin hitting $8,500, the highest since November.

GBP/USD remains on the back foot after Monday's Gross Domestic Product report disappointed by contracting by 0.3%. It joined dovish comments from officials at the Bank of England.

Oil prices are extending their gradual climb down, with WTI hovering around $58. Gold is following a similar path, trading below $1,550.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold retains positive bias amid sustained safe-haven demand, softer USD

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions ahead of the US-Iran nuclear talks underpin demand for safe-haven assets. Apart from this, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority in the United Kingdom is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.