FX Today: US data remains in centre stage

Pablo Piovano FXStreet

The US Dollar (USD) traded without a clear direction on Wednesday, losing some momentum following the auspicious start to the new trading year. Moving forward, the Greenback is expected to remain at the centre of the debate ahead of the release of key data that could shape the Fed’s rate path in the upcoming months.

Here’s what to watch on Thursday, January 8:

The US Dollar Index (DXY) alternated gains with losses in the mid-98.00s as investors assessed the mixed results from the US ADP report and the ISM Services PMI. Next on tap will be the usual weekly Initial Jobless Claims, Challenger Job Cuts, Balance of Trade results and the Unit Labor Cost index.

EUR/USD rose slightly, although it remained unable to break above the 1.1700 barrier in a convincing fashion. Factory Orders in Germany are due, seconded by Producer Prices and the Unemployment Rate in the euro bloc as well as the final Consumer Confidence gauge. In addition, the ECB will publish its Consumer Inflation Expectations alongside the speech by VP De Guindos.

GBP/USD dropped markedly, adding to Tuesday’s rejection from multi-week tops near 1.3570. The Halifax House Price index is due, seconded by the BBA Mortgage Rate and the BoE’s Decision Maker Panel survey (DMP).

USD/JPY barely moved, keeping the trade around the 156.70 region following the broader lack of direction in the FX gaalxy. The Average Cash Earnings will gather attention on the Japanese calendar, seconded by weekly Foreign Bond Investment data and the Consumer Confidence gauge.

AUD/USD reversed three daily advances in a row, easing to the 0.6720 zone despite the absence of a clear bias in the Greenback. The Balance of Trade results will be the salient data release Down Under.

WTI prices added to Tuesday’s retracement, deflating below the $56.00 mark per barrel as traders continued to evaluate developments from the US-Venezuela front.

Gold prices came under strong selling pressure, reversing three daily upticks in a row and briefly revisiting the $4,420 zone per troy ounce, or two-day lows. Silver prices gave back part of their recent strong gains, coming close to the $76.00 mark per ounce on Wednesday.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.