USD Index Price Analysis: Further upside targets the 2023 high at 105.60

EUR/USD rapidly left behind Monday’s optimism, slipping back to the mid-1.1600s amid the intense recovery in the Greenback. US inflation data remained well above the Fed’s target in December, although consumer prices lost some momentum, reinforcing the view of further Fed rate cuts in the upcoming months.

GBP/USD trades on the back foot at the end of the NA session on Tuesday, hovering around the 1.3430 zone against the backdrop of the resumption of the buying interest in the Greenback. Moving forward, the BoE’s Taylor and Ramsden are due to speak on Wednesday.

Gold gives back early gains on Tuesday after printing fresh record highs above $4,630 per ounce, easing back below the $4,600 mark amid humble losses for the day. The pullback comes amid the stronmger Greenback and despite US Treasury yields heading south.

Ethereum (ETH) has been seeing mild renewed buying activity since the beginning of the week. After recording steady inflows throughout last week, ETH Exchange Netflow has flipped to over 100K ETH in outflows this week.

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank. 

Ripple (XRP) is trading sideways above support at $2.00 at the time of writing on Tuesday. Recovery has remained elusive despite steady inflows into spot Exchange Traded Funds (ETFs), which have cumulatively attracted $1.23 billion.