The US dollar added to recent gains and rose to new session highs supported by investors re-pricing fewer interest rate cuts (if any at all) by the Federal Reserve this year.
Here’s what you need to know on Tuesday, January 14:
The US Dollar Index (DXY) crossed the 110.00 mark for the first time since November 2022, amid rising yields and expectations of only one interest rate cut by the Federal Reserve this year. Producer prices will take center stage, followed by the NFIB Business Optimism Index and the RCM/TIPP Economic Optimism Index. Additionally, the Fed’s Schmid and Williams are expected to speak.
The EUR/USD pair performed poorly and extended its downtrend to the sub-1.0200 region on the back of continued upward pressure in the US dollar. Soft’s speech from the ECB will be the only event on the euro calendar.
The GBP/USD pair kept its downtrend in place, revisiting the area below 1.2100 although it managed to regain some balance after that. Breeden from the Bank of England is scheduled to speak.
The USD/JPY pair recorded its third consecutive daily decline on the back of the additional rise in the value of the Japanese yen. Eco Watchers survey, bank lending numbers and current account results are expected on the Japanese agenda. In addition, Himeno of the Bank of Japan is scheduled to speak.
The AUD/USD pair attempted a modest bounce after four straight days of losses, although it remained under pressure and near the 0.6100 area. The Westpac Consumer Confidence Index will be released alongside final building permits and private home approvals.
US West Texas Intermediate crude oil prices continued their auspicious monthly recovery and crossed the $78.00 per barrel level due to additional US sanctions on Russian oil.
Gold prices gave up part of their recent multi-day advance in the wake of a strong US dollar and speculation of just one interest rate cut by the Federal Reserve this year. In the same vein, silver prices fell to their lowest levels in five days, breaching the key support level at $30.00 per ounce.
