Market Information

There is a chance for Australian Dollar (AUD) to test 0.6670; the major support at 0.6655 is not expected to come into view. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR/USD is practically flat on Wednesday, trading just below 1.1650 at the time of writing, with one-month lows in the 1.1615 area in sight, which are at a relatively short distance.

There seems to be no way of stopping the USD/JPY rally. Speculation of snap elections is mounting, and the return of some degree of political risk premium is offering another chance to test Japan’s tolerance band on its currency.

GBP/JPY eases below 214.00 after hitting fresh all-time highs at 214.30.

Pullback has scope to extend; the major support at 1.3390 is unlikely to come under threat. In the longer run, GBP is likely in a range-trading phase between 1.3390 and 1.3520, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

December’s softer-than-expected US core CPI suggests tariff-driven inflation pressures may be fading, but shutdown-related distortions leave markets confident the Fed will hold rates steady in January, OCBC's FX analysts Sim Moh Siong and Christopher Wong note.

The Pound Sterling (GBP) gains against its major peers, except antipodeans, on Wednesday. The British currency trades higher ahead of the United Kingdom (UK) monthly Gross Domestic Product (GDP) and factory data, which will be released on Thursday.

West Texas Intermediate (WTI) Oil price halts its four-day winning streak, trading around $60.40 per barrel during the European hours on Wednesday. Crude Oil prices lost ground as Venezuela resumed exports.

The United States (US) Census Bureau will publish November Retail Sales on Wednesday. The delayed data is expected to show that sales rose a modest 0.4% in the month, following no change in October.

The Indian Rupee (INR) trades higher against the US Dollar in the opening session on Wednesday. The USD/INR pair drops to near 90.30 as the Indian Rupee gains on the outcome of trade talks between the United States (US) and India on Tuesday.

A US delegation led by JD Vance and Marco Rubio meets Danish and Greenlandic officials today, but markets have so far priced little risk from US threats, leaving only modest scope for any geopolitical premium to unwind, ING's FX analyst Francesco Pesole notes.

Slight increase in downward momentum could lead to Euro (EUR) edging lower, but a break of 1.1615 appears unlikely.

European Central Bank (ECB) Vice President Luis de Guindos said in a speech during European trading hours on Wednesday that there are noticeable downside growth risks due to geopolitical woes.

Bank of England (BoE) policymaker Alan Taylor said in a summit at National University of Singapore that he expects interest rates to fall to their neutral levels soon.

Gold (XAU/USD) reaches the fresh record high of $4,639.77 during the Asian hours on Wednesday. Precious metals, including Gold, attract buyers amid growing bets on Federal Reserve (Fed) rate cuts following the softer inflation in the United States (US).

The AUD/USD pair is recovering its recent losses registered in the previous session, trading around 0.6700 during the European hours on Wednesday. The daily chart’s technical analysis indicated a weakening bullish bias as the pair is positioned slightly below the ascending channel pattern.

EUR/JPY extends its winning streak for the fourth successive session and reaches fresh all-time highs, trading around 185.40 during the early European hours on Wednesday.

Japan Chief Cabinet Secretary Seiji Kihara said during European trading hours on Wednesday that the government could intervene due to one-way excessive moves against the Japanese Yen (JPY).

Bank of Japan (BoJ) Governor Kazuo Ueda said that he still intends to lift interest rates if economic and price development are in line with the forecast, wages and prices rise moderately, Bloomberg reported on Wednesday. 

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous session. The DXY hovers around 99.10 during the Asian hours on Wednesday.

Here is what you need to know on Wednesday, January 14:

The USD/JPY pair posts a fresh one-and-a-half-year high near 159.45 during the early European trading session on Wednesday. The pair strengthens as the Japanese Yen (JPY) continues to underperform across the board amid political uncertainty in Japan.

The USD/CHF pair posts modest gains around 0.8010 during the early European session on Wednesday. The Greenback strengthens against the Swiss Franc (CHF) after US inflation data that was broadly in line with estimates.

EUR/USD moves little after registering modest losses in the previous session, trading around 1.1650 during the Asian hours on Wednesday. The 14-day Relative Strength Index (RSI) momentum indicator, currently at 40 (below the 50 midline), signals weak momentum without indicating oversold conditions.

Gold prices rose in India on Wednesday, according to data compiled by FXStreet.

Silver price (XAG/USD) extends its winning streak for the fourth trading day on Wednesday. The white metal rallies further to near $90.00 during the Asian trading session as demand for safe-haven assets remains firm amid geopolitical tensions.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.70 during the Asian trading hours on Wednesday. The WTI price declines as Venezuela resumes exports and the American Petroleum Institute (API) shows a big build in US crude inventories.

China's Trade Balance for December, in Chinese Yuan (CNY) terms, arrived at CNY808.80 billion, widening from the previous figure of CNY792.57 billion.

USD/CAD remains stronger for the second successive session, trading around 1.3900 during the Asian hours on Wednesday.

AUD/USD holds ground after registering modest losses in the previous session, trading around 0.6680 during the Asian hours on Wednesday.

The GBP/USD pair trades in negative territory around 1.3425 during the Asian trading hours on Wednesday, pressured by renewed US Dollar (USD) demand. Traders brace for the US Retail Sales and Producer Price Index (PPI) data later on Wednesday.

NZD/USD extends its losses for the second successive day, trading around 0.5730 during the Asian hours on Wednesday.

Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.

EUR/USD trades with losses on Tuesday even though the latest inflation in the United States was benign, hinting that the Federal Reserve could indeed reduce interest rates as priced in by the financial markets. At the time of writing, the pair trades at 1.1642, down by over 0.20%.

The USD/JPY pair jumps to near 159.15, the highest since July 2024, during the early Asian session on Wednesday. The Japanese Yen (JPY) weakens against the US Dollar (USD) amid concerns about looser fiscal and monetary policy in Japan.

Federal Reserve (Fed) Bank of Richmond President Thomas Barkin said on Wednesday that countries that safeguard monetary policy autonomy tend to achieve better economic outcomes, as political pressure on the US Federal Reserve remains in focus.

Silver price (XAG/USD) registers gain of 2% on Tuesday after reaching an all time high of 89.11 as the Greenback recovers amid a soft inflation report in the United States. At the time of writing, XAG/USD trades at $86.91 after bouncing off daily lows of $83.45.

Gold (XAU/USD) retreats modestly on Tuesday following the release of December’s inflation data in the US, which confirmed that prices remain stable, an indication that further rate cuts by the Federal Reserve may lie ahead.

The US Dollar (USD) resumed its robust recovery on Tuesday, leaving behind Monday’s pessimism as investors continued to assess the latest US CPI data while gearing up for further inflation readings, Retail Sales and comments from Fed officials.

The Australian Dollar (AUD) trades on the back foot against the US Dollar (USD) on Tuesday, pressured by a firmer Greenback following the release of the latest US inflation figures. At the time of writing, AUD/USD trades around 0.6677, retracing all of the previous day’s gains.

West Texas Intermediate (WTI) US Oil trades around $60.80 per barrel on Tuesday, up 2.45% on the day, extending a four-day bullish move. The US Crude Oil benchmark has returned to its highest levels in two months, supported by a renewed surge in geopolitical tensions in the Middle East.

USD/CAD trades around 1.3880 on Tuesday at the time of writing, virtually unchanged on the day, amid mixed macroeconomic signals from the United States (US) and Canada-specific supportive factors.

The Japanese Yen (JPY) weakens further against the US Dollar on Tuesday as the Greenback strengthens following the release of the latest US inflation report. USD/JPY trades around 159.00 at the time of writing, hovering near levels last seen in July 2024.

Fed’s Musalem (St Louis) said the US economy is likely to grow at or above its potential in 2026, helped by fiscal support and the lagged effects of earlier rate cuts.

The British Pound turns negative on the day, yet it remains near its Tuesday’s opening price after the latest inflation report in the US indicates that the Federal Reserve could continue to ease policy in 2026. The GBP/USD trades at 1.3450, down 0.03%.

The Euro (EUR) recovers modestly against the British Pound (GBP) on Tuesday, trimming earlier losses after attracting dip-buying interest near the 0.8650 region.

The Japanese Yen (JPY) fell 0.5% against the US Dollar (USD), underperforming all G10 currencies, as speculation over PM Takaichi’s snap election drove renewed selling and pushed USD/JPY toward levels last seen in early 2025, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) is trading flat to the US Dollar (USD) and consolidating in a tight range following Monday’s attempt at a bullish reversal of the pullback from mid/late December, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Gold (XAU/USD) edges modestly higher on Tuesday as traders react to the latest US inflation data. At the time of writing, XAU/USD trades around $4,615, up nearly 0.6%, just shy of Monday’s record high near $4,630.

USD/CHF trades around 0.7980 on Tuesday at the time of writing, up 0.10% on the day, but off its intraday high following the release of US inflation data.