Here’s everything you should know about Forex for Thursday, January 25:
Following Wednesday’s tumultuous action amid major economies’ PMI data releases, Forex markets appear to have calmed early Thursday. With attention shifting to European Central Bank (ECB) policy pronouncements. The US economic calendar will include the first estimate of fourth-quarter GDP growth. Durable Goods Orders for December, and weekly Initial Jobless Claims data.
The US Dollar (USD) fell versus its peers during the first part of the day on Wednesday. with risk flows dominating the action. Later in the American session. However, the positive PMI statistics, which suggested. That economic activity in the private sector In early January. The economy developed faster than expected, helping the currency to contain its losses. In the European morning, the USD Index (DXY) is trading above 103.00, while the benchmark 10-year US Treasury bond yield is above 4% and US stock index futures are mixed. The real GDP of the United States is expected to rise at a 2% annual rate in the fourth quarter, down from 4.9% in the third quarter.
Forex market Movement in pairs
USDCAD gained momentum on Wednesday, closing above 1.3500 for the first time since mid-December. The Bank of Canada (BoC) maintained the policy rate at 5%, as expected, following the January policy meeting. In the post-meeting press conference, BoC Governor Tiff Macklem recognized that discussions between officials The focus has switched to how long interest rates must remain at their current level before being reduced. Following Wednesday’s gain, USD/CAD entered a consolidation period above 1.3500 on Thursday.
EURUSD took advantage of broad-based USD weakness and finished higher on Wednesday. The pair, however, was unable to settle above 1.0900 and was last spotted drifting sideways slightly below it. The ECB is expected to leave key interest rates constant. ECB President Christine Lagarde will hold a press conference at 13:45 GMT to discuss the policy outlook.
GBPUSD rose to its highest level in over two weeks above 1.2770 during European trading hours on Wednesday, after UK PMI data above analysts’ expectations. The pair Later in the American session, the market corrected downward before stabilizing at 1.2700.
“Over the last six months, firms have generally expected their price growth to moderate, but on average to remain above the Bank’s inflation target range of 2-3%,” the Reserve Bank of Australia (RBA) stated in its most recent quarterly bulletin. The AUDUSD showed little reaction to this publication and was last observed trading sideways below 0.6600.
USDJPY fell strongly on Wednesday, losing more than 0.5% on a daily basis. The pair recovered moderately during Asian trading hours on Thursday, rising above 147.50.
After surging toward $2,040, gold lost traction and finished deep in negative territory on Wednesday, as the benchmark 10-year US Treasury bond yield surged higher. Strong US PMI figures. Early Thursday, XAUUSD is pretty quiet below $2,020.
