Forex Today: US Dollar takes little advantage of dull trading

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, January 17:

The American currency started the week where it left the previous one, easing across the FX board. Market participants were still cheering, easing United States price pressures and the possibility of a soon-to-come US Federal Reserve pivot on monetary policy. Optimism, however, faded at the beginning of a quiet week, with US markets closed amid the Martin L. King holiday. The Greenback managed to recover ahead of the daily close but ended the day with modest gains against most major rivals, and it is still at risk of falling.

The main focus was on Japan Government Bonds (JGBs) as the yield on the 10-year note surged to 0.52%, pushing the upper end of the BoJ’s range. The Bank of Japan is having a monetary policy meeting this week, and raising yields spurred speculation policymakers will finally introduce a shift in their monetary policy. Governor Haruhiko Kuroda’s term ends next April, and speculative interest believes he will introduce changes to the ultra-loose policy before leaving. BoJ Deputy Chief Masayoshi Amamiya is the leading candidate for the next governor.

The Bank of Canada Consumer Survey showed that expectations for 1-year ahead inflation increased to a record 7.18% from 7.11% in the third quarter, while 2-year ahead inflation expectations fell to 5.14% from 5.22% in the third quarter.

The EUR/USD pair hovers around 1.0815, while GBP/USD trades a handful of pips below the 1.2200 mark. The AUD/USD pair briefly traded above the 0.7000 mark but settled at around 0.6950, while USD/CAD seesaws around 1.3400. The USD/JPY pair recovered from a fresh multi-month low of 127.21 and currently stands at 128.50.

Gold retains the $1,900 mark, now consolidating at $1,914, while Crude Oil Prices edged lower, and WTI settled at $79.12 a barrel.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Don’t miss the ship from fear of wet feet

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds gains around 1.1800 amid renewed USD selling

EUR/USD regains positive traction and holds around 1.1800 in the European session, reversing the previous day's modest losses. The pair's uptick is sponsored by the emergence of fresh US Dollar selling, which remains induced by persistent trade-related uncertainties.

GBP/USD strengthens above 1.3500 on softer US Dollar

GBP/USD is posting moderate gains above 1.3500 in European trading on Wednesday. The pair appreciates as the US Dollar meets fresh supply following US President Donald Trump’s first State of the Union address and amid looming tariff uncertainty.

Gold eyes monthly top above $5,200 amid geopolitics, trade jitters

Gold buyers are back in the game, eyeing $5,200 and beyonf on Wednesday after seeing a correction from monthly highs on Tuesday. The US Dollar slips after Trump’s SOTU fails to impress and as AI-driven worries ease. Dovish Fed bets also weigh. Gold looks north so long as the key 61.8% Fibo resistance at $5,142 holds on the daily chart.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

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.