Forex Today: US data and Trump dictate the sentiment in the FX galaxy

Pablo Piovano FXStreet

The US Dollar regained some balance and managed to set aside part of the weekly pullback as market participants continued to assess headlines around Trump 2.0.

Here is what you need to know on Thursday, January 23:

The US Dollar Index (DXY) clawed back some gains, although a move above the 108.00 hurdle appeared elusive for the time being. The usual weekly initial Jobless Claims take centre stage, seconded by the EIA’s report on US crude oil inventories.

EUR/USD’s upside momentum lost some impetus in the area of multi-week peaks north of 1.0400 the figure. The European Commission will publish its advanced Consumer Confidence gauge for the month of January.

GBP/USD traded on the back foot in response to the modest uptick in the Greenback. The CBI Business Optimism Index and the CBI Industrial Trends Orders will be in the spotlight.

USD/JPY maintained its weekly choppiness well in place, this time surpassing the 156.00 barrier as investors kept warming up for the BoJ meeting on January 24. The Balance of Trade results come next, followed by weekly Foreign Bond Investment prints.

Another inconclusive session left AUD/USD hovering around the vicinity of the key 0.6300 area. The preliminary S&P Global Manufacturing and Services PMIs will grab all the attention in Oz.

Prices of WTI extended their leg lower and flirted once again with the $75.00 region per barrel as investors continued to adjust to Trump’s policies.

Prices of Gold advanced for the third session in a row, surpassing $2,760 per ounce troy amid persistent uncertainty surrounding President Trump’s announcements. Silver prices met some selling pressure after faltering just ahead of the key $31.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD advances to fresh monthly high above 1.3550

GBP/USD gains traction in the American session and trades at its highest level in a month at around 1.3550 on its way to a positive weekly closing. The US Dollar remains under pressure following the disappointing Retail Sales data and helps the pair push higher.

EUR/USD climbs toward 1.1600 on broad USD weakness

EUR/USD gathers bullish momentum on Friday and trades in positive territory above 1.1550. The US Dollar weakens heading into the weekend as markets continues to scale back bets for a rate hike in September following the disappointing July Retail Sales and UoM Consumer Sentiment data.

Gold bounces from weekly low on softer US Dollar, fading September Fed hike bets

Gold (XAU/USD) rebounds and closes in on $4,400 on Friday after opening the day in negative territory and falling to a fresh weekly low of $4,311, supported by a softer US Dollar (USD) and fading expectations of an imminent Federal Reserve (Fed) interest rate hike. The metal, however, remains below the two-month high of $4,449 touched on Thursday.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.