USD in the spotlight: latest news

The USD/JPY currency pair begins the week with uncertainty, as traditional factors like interest rate differentials and investor sentiment provide minimal direction.

Mortgage approvals in the UK fell to 61,013, missing the forecast of 64,800. This decline impacted the market, with the EUR/USD rising and gold prices surging. Meanwhile, cryptocurrencies and Microsoft experienced declines amidst ongoing market uncertainty.

Universal Digital, a foreign payment token issuer based in Abu Dhabi, has introduced USDU, the first USD-backed stablecoin. This launch is part of a broader trend in the crypto market, which has seen Tron and Worldcoin experience declines. Meanwhile, DeepSnitch AI is generating excitement with a bold 300X forecast.

The GBP/USD weekly forecast appears subdued as markets have reduced some of their weekly gains due to a recovery in the dollar and profit-taking activities.

Gold has surpassed $5000 per ounce, raising questions about its potential for further profit or the possibility of a market correction. This article explores the outlook for gold as a safe haven investment in 2026.

Recent weeks have seen significant geopolitical turbulence and dramatic headlines, yet the primary shift in the markets has been a declining US dollar. The dollar has continued to weaken amidst these developments.

Betting markets are increasingly favoring Kevin Warsh as the next Federal Reserve chair ahead of the announcement on Friday. This shift has led to a strengthening of the US dollar and heightened risks of a squeeze in the USD/JPY currency pair, especially in light of weak economic data from Japan.

The most recent U.S. Producer Price Index data shows a 0.5% increase, surpassing expectations and indicating possible upward pressure on consumer prices. This trend signals a bullish outlook for the U.S. dollar in 2026.

The EUR/USD weekly forecast indicates a potential correction downward, even though the pair closed the week with overall gains, influenced by the movements of the US dollar.

The USD/CAD exchange rate was approximately 1.3624 at the end of trading in London. Although it experienced a late-week rebound, it continues to remain significantly below previous levels, indicating potential selling opportunities for investors.

The Pound Sterling (GBP) has gained significant bullish momentum against the US Dollar (USD), with the GBP/USD pair reaching its highest level in four years, approaching 1.3870.

GBP/USD remains strong above the 1.3750 support level on Thursday, driven by ongoing weakness in the US dollar. The current consolidation indicates bullish momentum, reflecting the divergence between central bank policies.

The EUR/USD pair experienced significant movement during the last week of January, reaching a multi-year high of 1.2082. However, it later pulled back and reduced most of its weekly gains ahead of the European Central Bank's meeting and ongoing developments related to former President Trump.

The EUR/USD exchange rate experienced a significant decline as investors responded to increasing expectations that Kevin Warsh will be appointed as the next Federal Reserve Chair.

The AUD/USD pair has pulled back from the 0.71 resistance level as risk sentiment declines. Traders are now eyeing the 0.69 level for a potential rebound, particularly in light of the differing monetary policies between the Reserve Bank of Australia and the Federal Reserve.

The Euro to US Dollar exchange rate (EUR/USD) has dropped to 1.1892, continuing a late-week decline after it struggled to maintain levels above the critical 1.20 mark.

Gold prices have experienced a significant reversal following an unprecedented rally, exhibiting historic levels of volatility. Traders are now closely monitoring key support levels to assess the potential for the uptrend to continue.

Energy markets remain stable as oil and natural gas approach crucial support levels. Rising geopolitical tensions and decreasing momentum are influencing the direction of future movements in these markets.

The US Dollar (USD) faced a challenging and turbulent week, as the US Dollar Index (DXY) continued its downward trend, dropping to 95.50. The negative outlook for the dollar remains intact as it struggles to maintain levels above 98.60.

Warsh's nomination to succeed Powell at the Federal Reserve has temporarily strengthened the dollar, although potential risks continue to lean towards the upside.

The GBP/USD exchange rate increased on Thursday, as the Pound Sterling regained strength and approached the four-year high it achieved earlier in the year.

The EUR/USD pair is experiencing slight selling pressure on Thursday, continuing its pullback after reaching a new multi-year high of 1.2082 on Tuesday.

The USD/JPY pair has seen its recovery from 152 falter below 154, as the US dollar's rebound loses momentum. Meanwhile, the US dollar index hovers near multi-year lows.

Alex Loo from TD Securities predicts a 4-5% decline in the US dollar by the end of 2026. He noted that the rapid change in the dollar's value has surprised many investors and appears to be excessive. Additionally, Loo anticipates actions from China's People's Bank of China (PBOC) that could influence market dynamics.

Market analysis indicates that the US dollar has stabilized as resistance against the Euro and Japanese Yen emerges. The analysis includes insights on Euro to US Dollar, US Dollar to Japanese Yen, and US Dollar Index Futures. For a detailed overview, refer to the full market analysis on Investing.com.