Steady Dollar Amid Light Events

Published on: Jan 09, 2024|2 min read

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London: 9 January 2024 (TraderMade): After a shaky Monday - the US Dollar holds ground early Tuesday.

Eurozone unemployment data and US economic releases are on tap today, but the calendar is otherwise light.

Yen Steals the Spotlight

Inflation Eases: Japan's December CPI softened compared to November, leading investors to rebalance their positions. With the pressure off, USDJPY slightly declined by 0.078% to 144.1255 (at about 07:55 AM GMT), giving the Yen a chance to breathe.

Down Under Dollar Delight

Aussie Takes Flight: Australia's retail sales defied expectations, soaring ahead in November. This surge in consumer spending fueled a jump in AUDUSD (by 0.24%) to 0.67039, leaving the bears in the dust.

Euro and Pound Tread Water

Currency Conundrum: EURUSD and GBPUSD remained anchored within tight ranges around 1.09596 and 1.27476, respectively. Despite external market movements, neither currency could muster enough momentum for a decisive breakout.

Greenback Loses Luster as Risk Swells and Inflation Cools

Confidence Boost: Monday's news of a potential US spending agreement and lowered inflation expectations injected optimism into markets, chipping away at the Dollar's safe-haven appeal.

These developments suggest that a cautious dance plays out across the forex stage. While the Dollar faces headwinds, other currencies find pockets of opportunity. With crucial data releases on the horizon, the story is far from over, and the coming days could change the dynamics of the forex landscape.

Gold Recovers Modestly: The XAUUSD pair surged by 0.41% to 2036.31.