FX Today: US Retail Sales, more inflation data and Fedspeak will be in the limelight

The US Dollar (USD) resumed its robust recovery on Tuesday, leaving behind Monday’s pessimism as investors continued to assess the latest US CPI data while gearing up for further inflation readings, Retail Sales and comments from Fed officials.

Here’s what to watch on Wednesday, January 14:

The US Dollar Index (DXY) regained composure and advanced past the 99.00 barrier once again helped at the same time by the widespread move higher in US Treasury yields. The usual weekly MBA Mortgage Applications are due along with Producer Prices, Retail Sales, Business Inventories and Existing Home Sales, all ahead of the EIA’s weekly report on US crude oil stockpiles and the Fed Beige Book. In addition, the Fed’s Paulson, Miran and Williams are due to speak

EUR/USD met further selling pressure, retreating toward the 1.1630 zone in response to the continuation of the move higher in the Greenback. The German Full Year GDP Growth, followed by Industrial Production and the Balance of Trade in the broader Euroland are all expected on January 15.

GBP/USD rapidly left behind the auspicious start to the week, clocking decent losses and revisiting the 1.3420 region on Tuesday. Next of note across the Channel will be the RICS House Price Balance, seconded by GDP figures, Balance of Trade results, Industrial and Manufacturing Production, Construction Output, and the NIESR Monthly GDP Tracker, all due on January 15. Additionally, the BoE’s Ramsden is expected to speak.

USD/JPY advanced further, this time surpassing the 159.00 mark for the first time since July 2024. its leg higher, once again surpassing the 158.00 hurdle amid the widespread improvement in the risk-complex. Machine Tool Orders will be the sole release on the Japanese calendar.

AUD/USD dropped markedly, eroding Monday’s gains and breaking below the 0.6700 support once again. The final prints of Building Permits and Private House Approvals are due in Oz.

WTI prices rallied past the $61.00 mark per barrel, challenging three-month highs as traders assessed the potential supply disruption in Iranian crude oil.

Gold prices advanced for the fourth day in a row, clocking fresh record highs past the $4,630 mark per troy ounce amid expectations for extra rate cuts by the Fed and persistent geopolitical effervescence. The rally in Silver prices remained unabated for yet another day, this time breaking above the $89.00 mark per ounce to reach an all-time peak.