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  • Writer's pictureSieracki Milosz

USD Swings, Central Banks Decide, Commodities React

World, Forex, Cash, Money, Global, News
Market Overview: USD Fluctuations, Central Bank Decisions and Commodity Movements

Quiet Markets and Key Reports

In the aftermath of Tuesday's market volatility, the financial landscape appears relatively calm early Wednesday January 24. All eyes are on S&P Global, set to release Manufacturing and Services PMI reports for major economies - Germany, Euro area, the UK, and the US. Additionally, the Bank of Canada (BoC) is poised to announce monetary policy decisions during the American trading hours.

USD's Rollercoaster Ride

The US Dollar witnessed a bearish spell early Tuesday, slipping below 103.00 in the European session. The negative shift in risk sentiment, reflected by a bearish Wall Street opening, propelled the USD Index (DXY) higher later in the day. However, a late rally in technology stocks curtailed the USD's gains. As Wednesday unfolds, the benchmark 10-year US Treasury bond yield remains steady above 4%, and US stock index futures show modest gains.

BoC Policy Decision

Anticipation surrounds the Bank of Canada's decision on the policy rate, expected to remain at 5%. Governor Tiff Macklem's insights during the press conference will provide valuable clues. USD/CAD faced resistance at 1.3500 post-Monday's surge but closed negatively on Tuesday, stabilizing around 1.3450 in the European morning.

Currency Movements

EUR/USD exhibited a seesaw movement, climbing above 1.0900 on Tuesday but reversing course later, touching a month-low near 1.0820. A technical correction during Asian trading sees the pair fluctuating above 1.0850. GBP/USD faced a downturn after nearing 1.2750 on Tuesday, holding above 1.2700 early Wednesday.

In Australia, Judo Bank's Composite PMI improved to 48.1 in January. AUD/USD remains indifferent, trading below 0.6600. New Zealand's Consumer Price Index rose 4.7% yearly in Q4, with NZD/USD virtually unchanged near 0.6100.

USD/JPY navigated a volatile Tuesday, turning north after early declines. The pair struggled to maintain bullish momentum, retreating below 148.00 on Wednesday.

Precious Metals and Oil Market

Gold faced indecision for the fourth consecutive day, hovering above $2,020. Silver (XAG/USD) rallied for the second day, reaching the weekly high near $22.65.

West Texas Intermediate (WTI) crude oil traded around $74.30, with prices drifting lower due to concerns about increasing US oil output and rising supply in Libya and Norway.

As markets evolve, stay tuned for real-time updates on central bank decisions, currency movements, and commodity market shifts.

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