The US Dollar Index (DXY) managed to recover some ground, though a breakout above the 108.00 level remains out of reach for now. Weekly Initial Jobless Claims take the spotlight alongside the EIA’s report on US crude oil inventories, providing key cues for market sentiment.
The EUR/USD rally lost steam after reaching multi-week highs above the 1.0400 level. Meanwhile, the European Commission is set to release its preliminary Consumer Confidence data for January, which could influence further movement in the pair.
The GBP/USD pair traded lower as the modest recovery in the US Dollar applied pressure. Focus shifts to the UK’s CBI Business Optimism Index and CBI Industrial Trends Orders, which will offer fresh insights into the country’s economic outlook.
The USD/JPY pair remained volatile, climbing above the 156.00 level as investors positioned themselves ahead of the Bank of Japan’s (BoJ) January 24 meeting. In the meantime, upcoming Trade Balance data and Foreign Bond Investment figures will be closely monitored.
The AUD/USD pair saw another indecisive session, trading near the critical 0.6300 level. Attention now turns to Australia’s preliminary S&P Global Manufacturing and Services PMIs, which will be key for determining near-term market direction.
Commodity Market Highlights
- WTI crude oil prices extended their decline, revisiting the $75.00 per barrel level as markets continued to digest the implications of President Trump’s policies.
- Gold prices rose for the third consecutive session, exceeding $2,760 per troy ounce amid heightened uncertainty surrounding President Trump’s announcements.
- Silver prices faced selling pressure after failing to break above the $31.00 per ounce threshold, reflecting mixed sentiment in the precious metals market.
The FX market remains heavily influenced by US data releases and evolving geopolitical developments, with Trump’s policies adding another layer of volatility.
