Forex Today: US inflation takes center stage this week

Valeria Bednarik FXStreet

What you need to know on Tuesday, January 11:

The greenback seesawed between gains and losses, unable to find a clear direction and led by US Treasury yields once again. Market players await news about US inflation, as the country will release the final reading of the December Consumer Price Index next Wednesday, and it is expected to have been upwardly revised to 7% YoY.

Meanwhile, US Fed’s head Jerome Powell is due to testify on Tuesday on the renomination to chair the Federal Reserve Board of Governors before Senate Banking Committee. His remarks will likely be released before the event and will be closely watched for any hint on the future of monetary policy.

The EUR/USD pair trades around 1.1330, while GBP/USD hovers in the 1.3570 level, posting modest intraday losses. AUD/USD is unchanged on a daily basis, although USDCAD advanced, with the Canadian Dollar weakening alongside oil. The black gold spent the day under pressure, with WTI settling at $78.10 a barrel.

Gold, on the other hand, managed to recover some ground and trades just above the 1,800 threshold heading into the Asian opening. Nevertheless, its bullish potential remains limited.

The Japanese yen appreciated vs the dollar, with the pair currently trading at around 115.20. The sour tone of global indexes weighed on the pair as European and American indexes closed in the red.

US Treasury yields were up amid inflation-related concerns. The yield on the 10-year note touched 1.80% but currently stands at 1.77%.

Australia will publish November Retail Sales and the Trade Balance for the same month, likely to spur some action in the Asian session.

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.