FX Today: US consumer spending, additional inflation figures, and comments from Fed officials will take center stage

On Tuesday, the US Dollar (USD) regained its upward momentum, shaking off the previous day's negative sentiment as market participants continued to digest the latest US Consumer Price Index data and prepared for more economic releases, including Retail Sales and remarks from Federal Reserve officials.

Key Events to Monitor on Wednesday, January 14

The US Dollar Index (DXY) stabilized and climbed above the 99.00 level, supported by a broad increase in US Treasury yields. Wednesday's economic calendar features the regular MBA Mortgage Applications, along with reports on Producer Prices, Retail Sales, Business Inventories, and Existing Home Sales. These precede the Energy Information Administration’s weekly update on US crude oil inventories and the release of the Federal Reserve’s Beige Book. Additionally, speeches are scheduled from Fed members Paulson, Miran, and Williams.

EUR/USD faced renewed downward pressure, sliding toward the 1.1630 area as the US Dollar continued to strengthen. Looking ahead, Germany’s annual GDP growth figures, along with Industrial Production and the Eurozone’s Balance of Trade, are set to be published on January 15.

GBP/USD quickly reversed its early-week gains, posting notable losses and falling back to the 1.3420 range on Tuesday. The upcoming UK data docket includes the RICS House Price Balance, GDP numbers, Balance of Trade, Industrial and Manufacturing Production, Construction Output, and the NIESR Monthly GDP Tracker, all scheduled for January 15. Bank of England’s Ramsden is also expected to deliver remarks.

USD/JPY extended its rally, breaking above the 159.00 threshold for the first time since July 2024, after already moving past the 158.00 level amid broad-based risk appetite. The only notable release on Japan’s agenda is the Machine Tool Orders report.

AUD/USD experienced a sharp decline, erasing Monday’s progress and slipping below the 0.6700 support once more. Australia is set to release final data on Building Permits and Private House Approvals.

WTI crude oil prices surged beyond $61.00 per barrel, reaching three-month highs as traders evaluated the risk of supply disruptions in Iranian oil exports.

Gold continued its winning streak for a fourth consecutive session, setting new record highs above $4,630 per troy ounce amid expectations of further Federal Reserve rate cuts and ongoing geopolitical tensions. Silver prices also maintained their upward trajectory, breaking past $89.00 per ounce to achieve a historic peak.