Forex Today: The ECB takes centre stage… and US GDP

Source Fxstreet

The re-emergence of the appetite for the risk complex weighed on the Dollar and lifted EUR/USD past 1.0900. The prevailing bullish sentiment was also supported by news of further stimulus in China by the PBoC as well as auspicious prints from preliminary PMIs in Europe and the US.

Here is what you need to know on Thursday, January 25:

The risk-on trade forced the USD Index (DXY) to test the region below the key 103.00 support, although higher yields sparked a bounce in the index afterwards. Moving forward, the Q4 flash GDP Growth Rate will be in the spotlight on Thursday, along with the usual weekly Initial Claims and Durable Goods Orders.

 

In Europe, EUR/USD surpassed the 1.0900 hurdle and reached fresh multi-day highs, although the move fizzled out towards the end of the NA session. On Thursday, the ECB takes centre stage and is expected to leave its rates unchanged. President Lagarde is also seen reinforcing the case of a rate cut in the summer.

GBP/USD maintained the erratic performance and faded Tuesday’s retracement, managing to reclaim the area beyond 1.2700 the figure on the back of the risk-on sentiment.

USD/JPY bounced off multi-session lows near 146.60, regaining the 147.00 barrier and above amidst higher US and Japanese yields. Next on tap in the domestic docket is the weekly Foreign Bond Investment.

AUD/USD continued to navigate without a clear direction and retreated to the 0.6580 zone after climbing to weekly highs around 0.6620 during early trading. The AUD found support in the PBoC stimulus, higher copper prices, and the bearish tone in the greenback.

USD/CAD advanced to four-day peaks north of the 1.3500 barrier as investors assessed the BoC’s decision to keep rates unchanged for the fourth meeting in a row. Governor Macklem suggested that any discussion on rate cuts is premature.

A larger-than-expected drop in US crude oil supplies and Chinese stimulus helped the barrel of WTI reach a new four-week top near the $76.00 mark.

Gold prices slipped back to the $2010 region on the back of a rising appetite for risk-linked assets, while Silver saw its price edge higher and flirt with the $23.00 mark per ounce, or six-day highs.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Sep 14, Mon
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
Sep 15, Tue
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
Silver breaks $64 as precious metals rebound — can gold hold the $4,280 line into the Fed decision?Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.
Author  Suzie
Yesterday 08: 40
Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.
placeholder
Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for cryptoThe US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.
Author  Suzie
Yesterday 08: 47
The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.
placeholder
Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks inThe U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Author  Irene Q.
7 hours ago
The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Related Instrument
goTop
quote