Here’s what you need to know on Wednesday, January 14:
The US Dollar (USD) regained some lost ground against its major counterparts on Wednesday, supported by US Consumer Price Index (CPI) inflation data that reinforces expectations that the Federal Reserve (Fed) will remain on hold later this month.
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 strongest against the Japanese yen.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.00% | -0.04% | 0.13% | 0.03% | -0.21% | -0.07% | 0.03% | |
| euro | 0.00% | -0.04% | 0.13% | 0.04% | -0.21% | -0.08% | 0.03% | |
| GBP | 0.04% | 0.04% | 0.17% | 0.07% | -0.18% | -0.04% | 0.07% | |
| JPY | -0.13% | -0.13% | -0.17% | -0.09% | -0.33% | -0.21% | -0.09% | |
| Canadian | -0.03% | -0.04% | -0.07% | 0.09% | -0.24% | -0.12% | -0.00% | |
| Australian dollar | 0.21% | 0.21% | 0.18% | 0.33% | 0.24% | 0.13% | 0.24% | |
| New Zealand dollar | 0.07% | 0.08% | 0.04% | 0.21% | 0.12% | -0.13% | 0.11% | |
| Swiss franc | -0.03% | -0.03% | -0.07% | 0.09% | 0.00% | -0.24% | -0.11% |
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).
Following the latest US CPI inflation data for December, Fed Funds futures traders’ quotes showed that a rate cut is unlikely until June.
Traders will be watching the US Retail Sales and Producer Price Index (PPI) reports later on Wednesday. US retail sales are expected to rise 0.4% m/m in November. Meanwhile, the headline and core Producer Price Index (PPI) is expected to rise 2.7% year-on-year in November.
Unprecedented pressure from the White House to cut interest rates raises concerns about the Fed’s independence. The Federal Reserve has received subpoenas from the Justice Department over statements it made to Congress last summer regarding cost overruns for a $2.5 billion building renovation project at the central bank’s headquarters in Washington, Federal Reserve Chairman Jerome Powell said Sunday. Powell described the threats as a “pretext” to pressure the US central bank to lower interest rates.
Traders will be closely monitoring the latest geopolitical developments surrounding the Iranian civil unrest. US President Donald Trump canceled all meetings with Iranian officials and promised protesters that help was on the way. Trump has repeatedly threatened to intervene if the Iranian government kills protesters.
Australian Dollar/US Dollar It attracts some buyers near 0.6700 amid hawkish expectations surrounding the Reserve Bank of Australia (RBA) interest rate outlook. Additionally, China posted a trade surplus of $114.10 billion in December, defying renewed tariff pressures from Trump. China’s exports rose 6.6% in value year-on-year in December, beating market expectations for a 3% increase.
USD/JPY It rises to its highest levels since July 2024, around 159.30, on reports that Japanese Prime Minister Sanae Takaishi may call early elections on February 8 to consolidate her power. Bank of Japan Governor Ueda said on Wednesday that the central bank will continue to raise interest rates if economic developments and prices are in line with expectations and wages and prices rise moderately.
EUR/USD It is trading steadily below 1.1650 amid a data-free European calendar, while… GBP/USD It settles around 1.3435. Traders are preparing for the UK’s November GDP report, which is scheduled for release on Thursday. The harmonized index of consumer prices (HICP) from Germany will be published on Friday.
gold Gold maintains positive ground near a record high above $4,625, as traders turn to safe-haven metals amid geopolitical and economic uncertainty. silver Gold rose more than 3.65% to hit a new all-time high of $91.57 at the start of the European session on Wednesday.
West Texas Intermediate crude oil The price of oil fell to US$60.70 as Venezuela resumed exports and the American Petroleum Institute (API) showed a significant increase in US crude oil inventories. Growing concerns surrounding Iran and potential supply disruptions will be closely monitored.
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.
