Japan MOF: Japan sells US Treasuries for 3rd straight month in January

EUR/USD manages to ragain some poise on Wednesday, posting humble gains around the 1.1650 zone in a context of a modest selling pressure on the US Dollar as investors continue to assess the latest release of Retail Sales and Producer Prices. In addition, rising bets on the continuation of the Fed’s rate-cutting cycle also weighs on the Greenback.

GBP/USD trades on the positive foot on Wednesday, revisiting the 1.3450 region amid a decent uptick and the generalised better tone in the risk-linked universe. Cable’s recovery comes on the back of modest losses in the Greenback as traders evaluate potential rate cuts by the Fed in the next few months.

Gold resumes its ongoing recovery, quickly leaving behind Tuesday’s hiccup and hitting all-time highs around $4,640 per troy ounce on Wednesday. The move higher in the yellow metal comes in response to tepid losses in the Greenback, declining US Treasury yields and propects for extra rate cuts by the Fed.

Bitcoin stays above $95,000, supported by growing institutional demand, with ETF inflows reaching $753 million on Tuesday. Ethereum is poised to extend its rebound above the 100-day EMA, supported by improving sentiment.

Jerome Powell's eight-year tenure as Chair of the Federal Reserve is coming to a close during a period of intense pressure on the US central bank and divided views among policymakers about the appropriate stance of monetary policy. 

Hyperliquid is showing renewed strength, trading above $26.00 at the time of writing on Wednesday, as bulls regain control following a period of consolidation. The rebound is largely supported by improving on-chain metrics and growing derivatives market activity.