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Forex Today: US Dollar holds steady on light calendar day

Here is what you need to know on Tuesday, January 9:

After struggling to find demand during the American trading hours on Monday, the US Dollar seems to have stabilized early Tuesday, with the USD Index fluctuating above 102.00. Eurostat will release the Unemployment Rate data for November. Later in the day, November Goods Trade Balance, NFIB Business Optimism Index for December and RealClearMarkets/TIPP Economic Optimism Index for January will be featured in the US economic docket.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

 USDEURGBPCADAUDJPYNZDCHF
USD -0.02%0.04%0.07%0.21%-0.17%0.22%-0.01%
EUR0.02% 0.03%0.09%0.24%-0.11%0.17%-0.01%
GBP-0.02%-0.03% 0.05%0.17%-0.19%0.13%-0.02%
CAD-0.08%-0.10%-0.07% 0.11%-0.24%0.08%-0.08%
AUD-0.21%-0.20%-0.17%-0.11% -0.35%-0.02%-0.21%
JPY0.13%0.12%0.15%0.26%0.33% 0.28%0.16%
NZD-0.15%-0.17%-0.13%-0.08%0.04%-0.33% -0.16%
CHF0.02%0.02%0.06%0.10%0.21%-0.20%0.16% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

The positive shift seen in risk mood in the second half of the day on Monday caused the USD to lose interest following a bullish start to the week. Growing optimism about the US government avoiding a shutdown after leaders of the House and Senate announced a broad agreement on a $1.59 trillion spending deal allowed risk flows to return to markets. Additionally, the Federal Reserve Bank of New York's monthly survey showed that consumers' year-ahead inflation expectation dropped to its lowest level since January 2021 at 3%, putting additional weight on the USD.

During the Asian trading hours, the data from Japan showed that the annual Tokyo Consumer Price Index rose 2.4% in December, down from 2.6% increase recorded in November. After closing the first day of the week modestly lower, USD/JPY continued to edge lower early Tuesday and was last seen trading at around 144.00.

Retail Sales in Australia increased by 2% on a monthly basis in November, the Australian Bureau of Statistics reported on Tuesday. This reading followed the 0.2% contraction registered in October and came in better than the market expectation for a 1.2% growth. AUD/USD showed no immediate reaction to these figures and retreated to the 0.6700 area.

EUR/USD failed to make a decisive move in either direction on Monday and closed the day virtually unchanged. The pair continues to move up and down in a narrow band at around 1.0950 early Tuesday.

GBP/USD registered small gains on Monday after managing to stabilize above 1.2700. The pair holds steady near 1.2750 in the European morning.

Gold dropped to a multi-week low below $2,020 on Monday but erased a portion of its daily losses to end the day near $2,030. XAU/USD trades marginally higher early Tuesday as the benchmark 10-year US Treasury bond yield holds slightly above 4%.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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