Here’s what you need to know on Monday, January 19:
Financial markets are turning volatile at the start of the week, as investors weigh US President Donald Trump’s tariff announcements. US stock and bond markets will remain closed for Martin Luther King Jr. Day on Monday. In the second half of the day, December Consumer Price Index (CPI) data from Canada will be closely watched by market participants.
US President Trump said over the weekend that he will impose 10% tariffs starting February 1 on all goods from eight European countries that oppose his plan to seize Greenland. These countries include Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain and Norway. The tariff rate is also set to rise to 25% on June 1 if the US fails to reach an agreement to buy Greenland by then. Citing EU diplomats, Reuters reported on Sunday that EU ambassadors had reached a broad agreement to retaliate through a tariff package on 93 billion euros of US imports that were suspended for six months in August.
US dollar price today
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed today. The US dollar was the weakest against the Swiss franc.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.26% | -0.15% | -0.19% | -0.17% | -0.16% | -0.35% | -0.56% | |
| euro | 0.26% | 0.11% | 0.07% | 0.08% | 0.10% | -0.09% | -0.30% | |
| GBP | 0.15% | -0.11% | -0.02% | -0.02% | -0.01% | -0.20% | -0.40% | |
| JPY | 0.19% | -0.07% | 0.02% | -0.00% | 0.02% | -0.17% | -0.38% | |
| Canadian | 0.17% | -0.08% | 0.02% | 0.00% | 0.02% | -0.17% | -0.38% | |
| Australian dollar | 0.16% | -0.10% | 0.00% | -0.02% | -0.02% | -0.20% | -0.40% | |
| New Zealand dollar | 0.35% | 0.09% | 0.20% | 0.17% | 0.17% | 0.20% | -0.21% | |
| Swiss franc | 0.56% | 0.30% | 0.40% | 0.38% | 0.38% | 0.40% | 0.21% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
gold It started the week with a huge bullish gap and reached a new all-time high at $4,690 before pulling back a bit. At press time, XAU/USD was trading at $4,675, up more than 1.5% on a daily basis.
After closing the third straight week in positive territory, the US Dollar Index (USD) remains under downward pressure early Monday and is falling towards 99.00.
EUR/USD It benefits from broad US dollar weakness and trades above 1.1600 in the European morning. Eurostat will release revisions to the Eurozone consolidated CPI data for December.
US Dollar/Canadian Dollar The pair is heading south and trading below the 1.3900 level on Monday after touching its highest level since early December near 1.3930 on Friday. Annual CPI inflation in Canada is expected to remain unchanged at 2.2% in December.
After suffering heavy losses on Friday. silver Gold is regaining ground and trading at a new record high above $93.50 early Monday, up nearly 4% on the day.
After a bearish opening GBP/USD The pair gained recovery momentum and was last seen trading slightly higher on the day at around 1.3400.
USD/JPY It is bouncing towards 158.00 after falling below 157.50 at the weekly opening. Data from Japan earlier in the day showed that industrial production contracted by 2.7% month-on-month in November.
Frequently asked questions about risk sentiment
In the world of financial terminology, the two widely used terms “risk appetite” and “risk aversion” refer to the level of risk that investors are willing to take over the indicated period. In a “risk on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk off” market, investors begin to “play safe” because they are concerned about the future, and thus buy assets that are less risky and more guaranteed to generate a return, even if it is relatively modest.
Typically, during periods of “risk on”, stock markets rise, and most commodities – with the exception of gold – will also rise in value because they benefit from positive growth expectations. The currencies of countries exporting heavy goods are strengthening due to increased demand, and cryptocurrencies are rising. In a “risk off” market, bonds – especially major government bonds – rise, gold shines, and safe-haven currencies like the Japanese yen, Swiss franc and US dollar all benefit.
The Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD) and minor foreign currencies such as the Ruble (RUB) and South African Rand (ZAR) tend to appreciate in ‘risk’ markets. This is because the economies of these currencies rely heavily on commodity exports for growth, and commodities tend to rise in price during periods of risk. This is because investors expect increased demand for raw materials in the future due to increased economic activity.
The major currencies that tend to rise during “risk off” periods are the US Dollar (USD), the Japanese Yen (JPY), and the Swiss Franc (CHF). The US dollar, because it is the world’s reserve currency, and because in times of crises investors buy US government debt, which is considered safe because the world’s largest economy is unlikely to default. The reason for the yen is the increased demand for Japanese government bonds, because a high percentage of them are held by domestic investors who are unlikely to get rid of them – even in a crisis. The Swiss franc, because strict Swiss banking laws provide investors with enhanced capital protection.
(This story was corrected on January 19 at 08:10 GMT to fix the misspelling of the name Martin Luther King Jr.)
