Market Drivers; US Session: Trump, US Data Drive Markets

The US Dollar staged a partial recovery on Thursday, regaining some ground after a week of losses. Market participants continued to closely monitor headlines and assess the potential impact of recent policy shifts.

US Dollar Index (DXY)

The DXY attempted to regain strength, but a decisive move above the 108.00 level remained elusive. Key economic data releases scheduled for the day include the weekly initial jobless claims and the EIA’s report on US crude oil inventories, which are expected to influence market sentiment.

EUR/USD

The upward momentum in EUR/USD lost some steam as it approached multi-week highs above 1.0400. The European Commission’s release of the advanced Consumer Confidence gauge for January will be closely watched by market participants.

GBP/USD

The modest strengthening of the US Dollar weighed on GBP/USD, pushing the pair lower. The CBI Business Optimism Index and the CBI Industrial Trends Orders will be key data points to monitor for the British Pound.

USD/JPY

USD/JPY exhibited continued volatility, breaking above the 156.00 level as investors anticipated the upcoming Bank of Japan (BoJ) meeting on January 24th. Japan’s Balance of Trade results and weekly Foreign Bond Investment data are also scheduled for release.

AUD/USD

Another indecisive session left AUD/USD trading near the 0.6300 level. The preliminary S&P Global Manufacturing and Services PMIs for Australia will be closely watched by investors.

Commodities

WTI crude oil prices extended their decline, approaching the $75.00 per barrel mark as investors continued to assess the implications of recent policy shifts.

Gold prices continued their upward trend for the third consecutive day, surpassing $2,760 per ounce, driven by ongoing uncertainty surrounding recent policy announcements. Silver prices faced some selling pressure after encountering resistance near the $31.00 per ounce level.

Key Takeaways:

The US Dollar regained some ground after recent losses.
Market sentiment remains influenced by policy shifts and economic data releases.
Major currency pairs exhibited mixed performance.
Commodity markets saw contrasting trends, with Gold rising and WTI oil prices declining.