January 29, 2023

17 January Forex Signals Brief: Analysts Expect Slowed Inflation in Canada

Yesterday’s Market Action

The US dollar’s sell-off amplified again during yesterday’s European session, as last week’s sentiment continued, following slowed United States inflation. Again, the Japanese yen led the pack as the USD-JPY fell nearly 100 pips. Nonetheless, dollar buyers emerged again, and a reversal appeared, and most leading assets closed the day with slight changes.

The liquidity remained low amid the United States session following the holiday week, and markets muted after Europe’s session ended. Also, morning sessions saw Gold rallying to hit $1,929 before brief declines.

Stock markets displayed buying momentum as they relaunched last week’s bullish trend, with some decent gains coming from the European stock space. Concerning the statistics, the economic calendar remained light. However, the German WPI (Wholesale Price Index) report indicated a 1.6% dip in December, which may reduce consumer inflation in the upcoming months.

Today’s Market Anticipations

Today began with China’s GDP data for Q4 2022. The number displayed a notable slowdown, though the expansion pace remains satisfactory. However, retail sales confirmed another enormous 9.5% dip last month.

UK’s average earning index (3m/y) revealed another uptick, as the German ZEW Sentiment Index anticipated to reflect improvements for a while but stayed negative. Economists expect the Canadian CPI to reflect a 0.6% month-on-month dip in December before the United States Empire State Manufacturing Indicator.

Forex Signals Update

The Japanese yen kick-started its bullish momentum yesterday, sending USD-JPY lower by 100 pips early into the Asian session and Fxleaders’ analysts opened multiple sell signals. Nevertheless, the reversal emerged on the wrong side amid the 150 pip upside, so they closed the sessions with two winning and three losing forex signals.

Buying GOLD Dips

Gold had remained bullish since early November’s massive reversal when USD’s slump intensified. Buyers pushed beyond all Moving Averages, turning the MAs to support on the 1hr chart. The 10-Simple Moving Average and the 50-SMA have held the price amidst declines, and FXleaders’ analysts continued to purchase Gold against the Moving Averages.

Profit-Booking USD-CHF

USD-CHF maintains its bearish stance since downward reversals in recent months. Moreover, the peaks are getting lower. The analysts opened a sell signal following last week’s jump – which concluded at MAs. The trade closed yesterday at a profit.

Crypto Update

Cryptocurrencies saw notable surges last week, following improved sentiment and USD bearishness. Bitcoin climbed beyond $21K for the 2nd time, whereas Ethereum moved past $1.6K yesterday amidst buyer revival.

BTC Buyers Appear Relentless

That represents the first BTC bullish attempt since the crypto kick-started its slump in November 2021, and it touched new lows, dipping beneath the $16K level. This year’s first week brought reversal, and the bullish pressure accelerated last week as buyers pushed Bitcoin beyond the 200-Simple Moving Average.

That sent BTC-USD past the $20K region. Analysts took profits on their Bitcoin buy sign last week before yesterday’s high.

ETH Peaking Beyond $1.6K

Ethereum has demonstrated decent buying momentum over the last two weeks, following heightened sentiment as the USD dipped. The 20-Simple Moving Average has offered a support barrier on the four-hour timeframe, and another rebound from the Moving Average emerged yesterday, sending Ether’s price slightly beyond $1.6K.

However, slight dips emerged, pushing the leading alternative token slightly lower. Ethereum traded near $1,572 during this writing, reflecting a 1.40% surge over the last day (Coinmarketcap data).

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