Page 57 - Urrencies News Today

Here is what you need to know on Tuesday, January 16: Risk aversion remains the main underlying theme so far this Tuesday, as investors assess the timing and pace of US Federal Reserve (Fed) interest rate cuts amid the escalation of geopolitical tensions in the Middle East.

The Euro (EUR) is under increasing bearish pressure on Tuesday.

Sterling’s rebound from the 148.50 area has been capped right above 145.00.

The Euro is trimming losses following on hawkish ECB comments and higher German CPI.

The Australian Dollar (AUD) tumbles sharply against the US Dollar (USD) as US Treasury yields climb and the Greenback (USD) posts solid gains of more than 0.50% via the US Dollar Index (DXY).

In Tuesday's session, the EUR/GBP was observed trading mildly lower at 0.8596 after hitting a daily high of 0.8621 as the bulls struggled to hold their momentum.

Sellers maintained their dominance for yet another session on Tuesday, motivating AUD/USD to retreat to the area of five-week lows in the sub-0.6600 region, approaching at the same time the critical 200-day SMA near 0.6580.

The US Dollar (USD) started the trading session by surging to the 103.40 mark, quickly being pulled back by the resistance of the 100-day SMA.

As US markets returned to their daily routine, investors’ declining speculation on interest rate cuts by the Fed lent strong support to the Greenback, while ECB officials also remained at odds with markets’ perceptions of the timing of interest rate reductions, eventually weighing on the European currency.

In Monday's session, the EUR/GBP pair is seen trading at 0.8600 with a gain of 0.20% and hit a high of 0.8615.