Forex Today: Yen softens on fiscal worries, Gold climbs to near $5,100
Here is what you need to know on Tuesday, January 27:
The US Dollar (USD) recovers some lost ground near 97.10 heading into the European trading session. Nonetheless, the potential upside for the Greenback might be limited amid worries about the Federal Reserve (Fed) independence and concerns over another US government shutdown.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.07% | -0.03% | 0.32% | 0.18% | 0.05% | 0.13% | 0.10% | |
| EUR | -0.07% | -0.10% | 0.28% | 0.12% | 0.00% | 0.06% | 0.04% | |
| GBP | 0.03% | 0.10% | 0.38% | 0.21% | 0.08% | 0.16% | 0.14% | |
| JPY | -0.32% | -0.28% | -0.38% | -0.14% | -0.28% | -0.21% | -0.22% | |
| CAD | -0.18% | -0.12% | -0.21% | 0.14% | -0.13% | -0.05% | -0.08% | |
| AUD | -0.05% | -0.01% | -0.08% | 0.28% | 0.13% | 0.08% | 0.06% | |
| NZD | -0.13% | -0.06% | -0.16% | 0.21% | 0.05% | -0.08% | -0.02% | |
| CHF | -0.10% | -0.04% | -0.14% | 0.22% | 0.08% | -0.06% | 0.02% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Traders await the release of the US ADP Employment Change and the Conference Board's Consumer Confidence reports, which will be published later on Tuesday. The attention will shift to the Fed interest rate decision on Wednesday, with no change in rates expected.
AUD/USD retreats from its 16-month high of 0.6940, currently trading around 0.6915 on Tuesday. The Australian December Consumer Price Index (CPI) inflation data is due on Wednesday for further clues on the Reserve Bank of Australia’s (RBA) policy outlook.
USD/JPY rebounds above 154.50, snapping the two-day losing streak on Tuesday. The Japanese Yen (JPY) retraces from the highest level since November 2025 as traders remain concerned about Japan's fiscal health on the back of Prime Minister Sanae Takaichi's aggressive spending and tax cut plans.
Japan’s Chief Cabinet Secretary Minoru Kihara said at a regular briefing on Monday that officials will closely coordinate with the US and act in accordance with their joint finance ministers’ agreement last September. His comments echoed the finance ministry’s top FX official, Atsushi Mimura, who said Japan was keeping close contact with the US.
EUR/USD trades on a softer note below 1.1900 after three days of gains. The European Central Bank (ECB) President Christine Lagarde and German Bundesbank President Joachim Nagel are scheduled to speak later in the day.
GBP/USD gathers strength near 1.3685 in Tuesday’s early European session, bolstered by the stronger-than-expected UK Retail Sales and Purchasing Managers’ Index (PMI) data. These upbeat reports have led some analysts to predict a potential delay in further Bank of England (BoE) rate cuts.
USD/CAD trades in positive territory near 1.3735 amid renewed US President Donald Trump’s tariff threats. Trump on Saturday threatened to slap 100% tariffs on Canadian goods if the country strikes a trade deal with China.
The Bank of Canada (BoC) is widely expected to leave its key interest rate unchanged at 2.25% at its January meeting on Wednesday as inflation remains within the target range.
Gold and Silver hover near their record highs as traders seek shelter from global risks. The yellow metal rises 0.58%, trading around $5,085 per ounce. Meanwhile, the white metal surges 1.25% to $109.85 an ounce, benefiting from industrial demand.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
