Market Drivers – US Session, Jan. 25

While Gold prices remained stuck in their current consolidative range, Silver prices rebounded further and clinched their third straight day of gains, this time flirting with the $23.00 mark per ounce.

Firmer-than-expected US GDP figures have provided support to the US Dollar and further reinforced the already resilient stance of the US economy, relegating to a secondary role the impassive ECB event, where C. Lagarde kept the summer rate cut in the pipeline.

The resurgence of buying interest in the dollar sparked a strong rebound in the USD Index, especially after flash Q4 GDP figures came in above estimates and despite declining US yields across the curve. Looking at Friday’s US docket, the salient event will be the release of inflation figures tracked by the PCE for the month of December, seconded by Personal Income, Personal Spending and Pending Home Sales.

EUR/USD dived closer to 2024 lows near 1.0820 on the back of usual dollar dynamics and the irresolute message from the ECB at its gathering. Moving forward, GfK will release its Consumer Confidence gauge for the month of. February, which will be the only scheduled release on the old continent, at the end of the week.

The intense bounce in the greenback kept GBP/USD’s price action depressed and forced it to break below the key 1.2700 support. On Friday, Gfk’s Consumer Confidence reading is due across the Channel.

USD/JPY partially faded Wednesday’s marked downtick and gathered decent upside traction well north of 147.00 the figure. The BoJ will publish its Minutes at the end of the week, while the final prints of the Coincident Index and the Leading Economic Index are also on tap.

Another inconclusive session saw AUD/USD maintain its trade around 0.6580, following another fruitless move beyond the 0.6600 barrier on Friday.

Geopolitics, shrinking US oil production, and the larger-than-expected weekly drop in US crude oil inventories, coupled with Chinese stimulus, lifted the barrel of WTI to a new two-month high past the $77.00 mark per barrel.

Also Read:
WTI hovers around $77.00 with positive momentum as focus shifts to US PCE

Treasury yields decline following data supporting Fed’s soft landing

Canadian dollar benefits from surging oil prices

EUR/GBP experiences losses post ECB rate decision

Gold attempts to recover after higher-than-expected US GDP data

PCE Data Preview: Forecasts by major banks, US inflation seen toward target

Lagarde looks optimistic about ‘disinflation process’