USD Index Slides Below 103.00: The US Dollar faces challenges as the USD Index slips below 103.00 during European trading hours. The European Commission is set to release the preliminary Consumer Confidence Index for January.
US Economic Docket Highlights:
Richmond Fed Manufacturing Index for January.
2-year US Treasury note auction in the American session.
Bank of Japan Keeps Policy Unchanged:
Following the January policy meeting, the Bank of Japan (BoJ) maintains policy settings as anticipated.
Interest rate and the 10-year Japanese government bond yield target remain at -10bps and 0%, respectively.
Yield curve control (YCC) strategy is steady, allowing 10-year government bond yields to move up to around 1.0%.
BoJ Governor Kazuo Ueda emphasizes readiness for additional easing measures if necessary.
USD/JPY under bearish pressure, trading slightly above 147.00, down more than 0.5% daily.
NZD/USD Gathers Momentum:
NZD/USD climbs above 0.6100.
Statistics New Zealand to release Consumer Price Index for the fourth quarter in the Asian session.
EUR/USD in Positive Territory:
EUR/USD registers small daily losses on Monday but regains traction above 1.0900.
GBP/USD Advances:
GBP/USD turns north, advancing toward 1.2750.
UK Public Sector Net Borrowing for December at £6.8 billion, compared to £12.7 billion in November.
Gold Prices Fluctuate and Rebound:
Gold fluctuates slightly above $2,020 on Monday.
XAU/USD gathers bullish momentum, climbing back above $2,030.
In the currency markets, the US Dollar’s struggle for demand, coupled with central bank developments and economic data releases, shapes the tone for Tuesday’s trading. Investors closely monitor key support levels and economic indicators for potential market movements.
