|

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.

Author

Pablo Piovano

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

More from Pablo Piovano
Share:

Editor's Picks

AUD/USD keeps the red near 0.6950 after weak Aussie jobs data

AUD/USD holds losses near 0.6950 on disappointing Australian jobs data, extending the previous day's retracement slide from the monthly high and hitting a fresh weekly low during Thursday’s Asian session. Meanwhile, declining US bond yields drag the US Dollar away from the April 2025 high, touched after Wednesday's hot US CPI, helping limit losses for the currency pair.

USD/JPY slides back below 158.00 as USD reverses post-CPI gains

USD/JPY extends the previous day's pullback from a three-week high, attracting follow-through selling and sliding below 158.00 during Thursday's Asian session. Traders remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. The US Dollar, meanwhile, reverses Wednesday's hot CPI-led gains to April 2025 highs as US bond yields retreat on China bond-buying talk, further pressuring the pair.

Gold rebounds to $4,150 as China bond-buying reports smash US yields

Gold attracts strong buying and retests $4,150 during the Asian session on Thursday, snapping a three-day losing streak to a one-week low. Retreating US bond yields drag the US Dollar away from the April 2025 high, touched in reaction to Wednesday’s hot US CPI report, and boost the non-yielding bullion. Reports that China is quietly buying US Treasuries through Canada are smashing US Treasury bond yields and the USD.

Bitcoin falls on hot CPI: Why $80,000 support matters

Bitcoin's (BTC) most critical level to watch is near $80,000 as September's hot inflation reading pressures the crypto market, according to Glassnode. The top crypto declined within minutes of the September Consumer Price Index (CPI) release, which showed a 3.7% annual increase in headline inflation, above forecasts of 3.6%. Core inflation, which excludes food and energy prices, came in at 2.6%.

China seems routing US Treasury holdings through Canada

According to a Bloomberg report, China seems to be moving United States securities to non-US custodian banks in other countries, masking its role in financing US deficits.

Has Bitcoin really escaped the macro forces it was built to fight?
Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?