The US dollar started the new trading week on a lower note as market participants continued to digest the narrative of further tariffs by the Trump administration, while investors began preparing for the Federal Open Market Committee meeting on Wednesday.
Here’s what you need to know on Tuesday, January 28:
The US Dollar Index (DXY) posted moderate losses, although it managed to regain some momentum after bottoming near 107.00. Durable goods orders will be released in the first session, followed by the FFA Home Price Index, Conference Board Consumer Confidence, and Richmond Fed Manufacturing Index, all ahead of API’s weekly report on US crude oil inventories.
EUR/USD rose to new yearly highs around 1.0530 on the back of the dollar’s supply stance, only to reverse part of those gains towards the end of the day. Cipollone and Lagarde of the European Central Bank are scheduled to speak.
GBP/USD alternated with gains and losses around the 1.2480 area after an early move beyond the 1.2500 mark. The BRC Shop Price Index should give an idea of how much inflation pressure is affecting the first month of the year.
The USD/JPY pair fell sharply to six-week lows near 153.70 on the back of investors re-pricing for further tightening by the Bank of Japan. The next notable event in Japan will be the publication of the Bank of Japan meeting minutes on January 29.
The AUD/USD pair suffered from discouraging prints from China’s PMIs over the weekend and contracted to sub-0.6300 territory on Monday. Next up will be the release of the NAB Business Confidence Barometer.
WTI crude oil remains well defensive and is approaching yearly lows near the $72.00 per barrel mark on the back of continued uncertainty surrounding President Trump’s tariff plans.
Gold prices corrected lower near the all-time highs seen last Friday and retested the multi-day low area near $2,730 per ounce. Silver prices followed suit and were trading within striking distance of the 200-day simple moving average around the $30.00 per ounce level.