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Forex Today: USD bounces in Asia, Eurozone CPI eyed

Dhwani Mehta FXStreet

Forex today witnessed good two-way price movement in the US dollar versus its main competitors, with a solid comeback staged from multi-year troughs below 90 handle knocked-off most majors lower. Meanwhile, the EUR, AUD, and GBP were offered into the technical selling while the Yen remained unfazed by weaker Asian equities and Treasury yields.

Amongst the commodities, oil prices traded neutral ahead of the US weekly crude stockpiles data and gold prices held onto gains above $ 1340 levels.

Main topics in Asia

BoJ keeps JGBs purchases unchanged in today’s operation

The Bank of Japan (BoJ) made no changes to the purchases of the Japanese Government Bonds (JGBs) in the 1-3 and 3-5 year maturities for today.

US House Republicans debate stop-gap govt funding bill - Reuters News

As per Reuters news, US House Republicans are considering a stop-gap govt funding bill through Feb 16. If approved, it will be fourth such measure to keep govt operating since October.

AUD/USD closes in on 0.80 after home loans beat forecasts

AUD/USD cut through resistance at 0.7978 (76.4% Fib R of Sep-Dec sell-off) and almost tested 0.80 levels after the data released in Australia showed the value of home loan lending rose for the second month in November.

Participants in N. Korea meeting agree to consider further diplomatic actions that go beyond UN resolution

Reuters reporting the statement issued from the 'Co-chairs' on North Korea, following their meeting in Vancouver.

Brexit uncertainty - Number of new graduate jobs falls for first time since financial crisis

The number of new graduate jobs fell for first time since the financial crisis as leading recruiters downgrade hiring plans due Brexit uncertainty says a survey of the UK’s leading 100 graduate recruiters.

Key Focus ahead

The EUR calendar continues to remain data-light for the third straight session, with nothing of note slated for release, except for the Eurozone final CPI report. Ahead of the NA session, we have the speech from the BOE MPC member Saunders at the Financial Intermediary and Broker Association inaugural conference, in London.

The main risk event for the markets today remains the Bank of Canada (BOC) interest rate decision, followed by Poloz’ press conference. Markets are widely expecting a 25bps rate hike today.

EUR/USD fades spike to 3-year high after inside day doji candle

The EUR/USD rose to a fresh three-year high of 1.2323 a few minutes ago only to fall back below 1.23 levels, indicating the overbought technical conditions are likely coming into play.

GBP/USD rejected at 1.3835, surrenders 1.3800

The GBP/USD pair failed once again to sustain above the 1.38 handle, now accelerating the corrective slide from fresh post-Brexit vote highs reached at 1.3836.

Focus on Wednesday's final EZ CPI - BBH

Global Currency Strategy Team at Brown Brothers Harriman & Co. (BBH) offered a brief preview for the upcoming release of the final EZ CPI print on Wednesday.

Canadian Dollar Awaits Central Bank Anticipated Rate Hike

The USD/CAD has been almost flat this week awaiting the rate decision by the Bank of Canada (BoC).

BOC to raise the overnight rate by 25bps today – RBC CM

Analysts at RBC Capital Markets offer a brief sneak peek on what to expect from today’s Bank of Canada’s (BOC) monetary policy decision.

Fed Beige Book preview - Nomura

Analysts at Nomura offered their preview for the Fed Beige Book.

GMT	Event	Consensus	Previous
Wednesday, Jan 17
n/a	EUR 30-y Bond Auction		1.2%
10:00	EUR Consumer Price Index - Core (YoY)	1.1%	1.1%
10:00	EUR Consumer Price Index (MoM)	0.4%	0.1%
10:00	EUR Consumer Price Index - Core (MoM)	0.2%	-0.1%
10:00	EUR Consumer Price Index (YoY)	1.4%	1.4%
11:45	GBP MPC Member Saunders Speech
12:00	USD MBA Mortgage Applications		8.3%
13:55	USD Redbook index (YoY)		3.4%
13:55	USD Redbook index (MoM)		0.1%
14:15	USD Industrial Production (MoM)	0.4%	0.2%
14:15	USD Capacity Utilization	77.3%	77.1%
15:00	USD NAHB Housing Market Index	72	74
15:00	CAD Bank of Canada Monetary Policy Report
15:00	CAD BOC Rate Statement
15:00	CAD BoC Interest Rate Decision	1.25%	1.00%
16:15	CAD BoC Press Conference
19:00	USD Fed's Beige Book
20:00	USD Fed's Evans Speech
20:15	USD FOMC Member Kaplan Speech
21:00	USD Total Net TIC Flows	$31.3B	$151.2B
21:00	USD Net Long-Term TIC Flows	$36.5B	$23.2B
21:30	USD FOMC Member Mester speech
21:30	USD API Weekly Crude Oil Stock		-11.19M
Thursday, Jan 18
n/a	AUD HIA New Home Sales (MoM)		-6.1%
00:01	GBP RICS Housing Price Balance		0%

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD appears well offered near 1.3160

GBP/USD builds on Tuesday’s losses, although it now manages to pick up some pace and bounce off earlier multi-month troughs near 1.3140. The Greenback’s solid performance and continued political turmoil in the UK are keeping Cable under persistent pressure, with little sign of a meaningful recovery.

EUR/USD softens to near 1.1350 as Fed hike bets rise ahead of PCE inflation data

The EUR/USD pair declines to around 1.1355 during the early Asian trading hours on Thursday. The Euro weakens to its lowest level since June 2025 against the US Dollar as traders increase their bets on US interest rate hikes later this year. The US May Personal Consumption Expenditures inflation data will be the highlight on Thursday.

Gold struggles near YTD lows on hawkish Fed bets, bullish USD ahead of US PCE

Gold is seen consolidating around $4,000 during the Asian session on Thursday as bears pause following the overnight slump to the lowest level since November 2025. Despite easing inflationary concerns amid falling oil prices, elevated Fed rate-hike bets help the US Dollar preserve its recent strong gains to the highest level since May 2025. This might continue to undermine the non-yielding bullion as the focus shifts to the release of the US PCE Price Index.

Strategy MSTR shares drop to two-year low as Bitcoin dip below $60K

The common shares of Strategy fell below $100 on Wednesday for the first time since March 2024, extending losses as Bitcoin's prolonged decline continues to weigh on investor perceptions of the company's leveraged crypto strategy. The company's MSTR stock closed trading at $94, reflecting a 9.3% decline.

US-Iran talks: The next 60 days will decide where Oil prices go next

Oil markets received some encouraging news after weeks of rising tensions in the Middle East. But let’s not get ahead of ourselves: we’re far from victory, and markets just seem to have priced out the worst-case scenario. The US and Iran have reportedly made "substantive progress" in talks in Switzerland and agreed on a framework for working toward a broader deal within 60 days.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.