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
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.
Sep 17, Thu
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.
placeholder
Gold rebounds to near $4,350 on weaker US Dollar, falling oil pricesGold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.
Author  FXStreet
Sep 18, Fri
Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.
placeholder
US to delay new "overcapacity" tariffs on China — what the pause means for trade, inflation and the dollarWashington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.
Author  Mitrade
Sep 18, Fri
Washington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.
placeholder
Bitcoin squeezes back above $80,000 — 110,000 traders liquidated as the hawkish Fed and CLARITY setback fail to hold it down; is $83,000 next?Bitcoin closed above $80,000 on Friday for the first time since September 7, and pushed to $81,299 over the weekend, triggering about $603 million of liquidations — $523 million of them shorts — across more than 110,000 traders. With the Fed's hike already priced and the SEC and CFTC advancing crypto rules after the CLARITY Act failed, here is what stands between BTC and the $83,000 gate.
Author  Suzie
6 hours ago
Bitcoin closed above $80,000 on Friday for the first time since September 7, and pushed to $81,299 over the weekend, triggering about $603 million of liquidations — $523 million of them shorts — across more than 110,000 traders. With the Fed's hike already priced and the SEC and CFTC advancing crypto rules after the CLARITY Act failed, here is what stands between BTC and the $83,000 gate.
Related Instrument
goTop
quote