The US Dollar (USD) is narrowly mixed to a little firmer against the majors in quiet trade. It’s another very light session for data, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

USD mixed to firmer in quiet trade as markets await CPI

“Markets have little incentive to move significantly ahead of tomorrow’s major event risk in North America—US CPI data and the BoC policy decision. The GBP and MXN are grinding out small gains on the USD so far on the session while the AUD has given up yesterday’s China stimulus-driven bump to slide more than 0.6%, pulling the NZD lower with it.”

“The RBA policy meeting overnight concluded with no change in the policy rate, as expected, but policymakers indicated that they are gaining confidence in the inflation outlook which prompted markets to boost expectations that a rate cut could, finally, emerge in February. Global stock trends look a little soft again after yesterday’s US market losses when the Santa rally appeared to stumble a bit. The S&P 500 is up more than 30% this year so a correction ought not surprise.”

“The charts suggest that the stock rally may be starting to look a bit stretched and might be losing momentum. Soft stocks may have given the USD a bit of a lift in European trade but the roots of the dollar gains seen in the past few days really lie in the strong rebound seen around Friday’s jobs data. In contrast to the ‘seasonal’ soft trend in the USD that we often see in December, near-term risks appear geared towards a bit more strength in the DXY towards 106.75. Support is 106.00/05.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains offered in the low-1.0900s

EUR/USD remains offered in the low-1.0900s

The generalised selling pressure continues to weigh on the risk complex, pushing EUR/USD back toward the 1.0900 support level amid a growing risk-off mood, as traders assess President Trump’s reciprocal tariffs and their impact on economic activity.

EUR/USD News
GBP/USD retreats further and breaks below 1.2800

GBP/USD retreats further and breaks below 1.2800

The US Dollar is picking up extra pace and flirting with daily highs, sending GBP/USD to multi-week lows near 1.2770 in a context where safe-haven demand continues to dictate sentiment amid the chaos of US tariffs.

GBP/USD News
Gold recedes to four-week lows near $2,950

Gold recedes to four-week lows near $2,950

The persistent selling pressure is now dragging Gold prices to the area of fresh multi-week troughs near the $2,950 mark per troy ounce, always amid the continuation of the recovery in the US Dollar, highr US yields across the curve and unabated tariff tensions.

Gold News
US stock market suddenly reverses higher after rumor of 90-day tariff pause before sinking again

US stock market suddenly reverses higher after rumor of 90-day tariff pause before sinking again Premium

NASDAQ sinks 4% before shooting higher on tariff pause rumor. CNBC says White House unaware of tariff pause rumor. S&P 500 sinks to January 2024 level. Bank of America cuts its year-end target for S&P 500 by 16%.

Read more
Strategic implications of “Liberation Day”

Strategic implications of “Liberation Day”

Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025