Created
: 2025.01.30
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Forex Today: ECB policy decisions, US GDP data to drive market action
World FX news
Breaking news
Forex Today: ECB policy decisions, US GDP data to drive market action
New
2025.01.30 16:43
2025.01.30 16:43
2025.01.30 16:43
Here is what you need to know on Thursday, January 30:
Markets turn relatively quiet early Thursday as investors gear up for the European Central Bank's (ECB) interest rate decision and the first estimate of the fourth-quarter Gross Domestic Product (GDP) data from the US, while assessing the Federal Reserve's (Fed) policy announcements. The US economic calendar will also feature weekly Initial Jobless Claims and December Pending Home Sales data.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.78% | 0.36% | -0.71% | 0.45% | 1.55% | 1.17% | 0.17% | |
| EUR | -0.78% | -0.34% | -1.32% | -0.19% | 0.77% | 0.51% | -0.50% | |
| GBP | -0.36% | 0.34% | -1.31% | 0.16% | 1.12% | 0.88% | -0.15% | |
| JPY | 0.71% | 1.32% | 1.31% | 1.20% | 2.46% | 2.14% | 1.03% | |
| CAD | -0.45% | 0.19% | -0.16% | -1.20% | 0.91% | 0.72% | -0.31% | |
| AUD | -1.55% | -0.77% | -1.12% | -2.46% | -0.91% | -0.22% | -1.23% | |
| NZD | -1.17% | -0.51% | -0.88% | -2.14% | -0.72% | 0.22% | -1.23% | |
| CHF | -0.17% | 0.50% | 0.15% | -1.03% | 0.31% | 1.23% | 1.23% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar 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 January meeting, the Fed left the policy rate unchanged at 4.25%-4.5% as expected. In its policy statement, the Fed removed the language suggesting inflation had "made progress" toward its 2% target, instead stating that the pace of price increases "remains elevated." While responding to questions from the press later, Fed Chairman Jerome Powell said that there was elevated uncertainty because of significant policy shifts. "We don't need to be in a hurry to make any adjustments," he added. After the Fed event, the probability of a 25 basis points (bps) rate cut in March dropped below 20% from above-30%, according to the CME FedWatch Tool. Meanwhile, the US Dollar (USD) ended the day marginally higher before going into a consolidation phase at around 108.00 early Thursday.
The ECB is expected to lower key rates by 25 bps on Thursday. ECB President Christine Lagarde will deliver the policy statement and respond to questions in a press conference starting at 13:45 GMT. EUR/USD fluctuates in a tight range slightly above 1.0400 after closing virtually unchanged on Wednesday. Eurostat will publish preliminary Q4 GDP data later in the session.
GBP/USD continues to move up and down in a narrow range slightly below 1.2450 after failing to make a decisive move in either direction on Wednesday.
USD/JPY stays under bearish pressure and trades near 154.50. Bank of Japan (BoJ) Deputy Governor Ryozo Himino said on Thursday that the central bank will raise rates if the economy and prices move in line with forecasts.
The Bank of Canada (BoC) lowered the policy rate by 25 bps to 3% after the January meeting, as anticipated. BoC Governor Tiff Macklem noted that the Canadian Dollar's movements had not constrained them so far but added that they will have to take bigger moves in the exchange rate into account as they set policy going forward. USD/CAD posted small gains on Wednesday and was last seen trading marginally higher on the day above 1.4400.
After falling below $2,750 in the first half of the day on Wednesday, Gold regained its traction and erased a large portion of its daily losses. XAU/USD edges higher toward $2,770 in the early European session on Thursday.
Central banks FAQs
Central Banks have a key mandate which is making sure that there is price stability in a country or region. Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating. Constant rising prices for the same goods means inflation, constant lowered prices for the same goods means deflation. It is the task of the central bank to keep the demand in line by tweaking its policy rate. For the biggest central banks like the US Federal Reserve (Fed), the European Central Bank (ECB) or the Bank of England (BoE), the mandate is to keep inflation close to 2%.
A central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate. On pre-communicated moments, the central bank will issue a statement with its policy rate and provide additional reasoning on why it is either remaining or changing (cutting or hiking) it. Local banks will adjust their savings and lending rates accordingly, which in turn will make it either harder or easier for people to earn on their savings or for companies to take out loans and make investments in their businesses. When the central bank hikes interest rates substantially, this is called monetary tightening. When it is cutting its benchmark rate, it is called monetary easing.
A central bank is often politically independent. Members of the central bank policy board are passing through a series of panels and hearings before being appointed to a policy board seat. Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy. Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called 'doves'. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called 'hawks' and will not rest until inflation is at or just below 2%.
Normally, there is a chairman or president who leads each meeting, needs to create a consensus between the hawks or doves and has his or her final say when it would come down to a vote split to avoid a 50-50 tie on whether the current policy should be adjusted. The chairman will deliver speeches which often can be followed live, where the current monetary stance and outlook is being communicated. A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency. All members of the central bank will channel their stance toward the markets in advance of a policy meeting event. A few days before a policy meeting takes place until the new policy has been communicated, members are forbidden to talk publicly. This is called the blackout period.
Last updated
: 2025.01.30
Related articles
Canadian Dollar middles as markets mull over mixed US data
40 minutes agoUS Dollar weakens as markets digest Fed decision and GDP miss
44 minutes agoMexican Peso extends rally unfazed by economic contraction
58 minutes agoAUD/USD neutral as US GDP data misses expectations
2025.01.31 01:15USD/JPY falls as US GDP misses estimates bolstering Yen
2025.01.31 00:16Gold challenges record highs post ECB, US GDP
2025.01.31 00:09
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Canadian Dollar middles as markets mull over mixed US data
The Canadian Dollar (CAD) went nowhere fast on Thursday, cycling near the 1.4400 handle against the US Dollar (USD).
New
2025.01.31 03:26US Dollar weakens as markets digest Fed decision and GDP miss
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, hovers below 108.00 as traders react to the Federal Reserve's (Fed) latest decision and a weaker-than-expected US Gross Domestic Product (GDP) print.
New
2025.01.31 03:23Mexican Peso extends rally unfazed by economic contraction
The Mexican Peso (MXN) surged for the third consecutive day against the Greenback as the emerging market currency shrugged off Mexico's economic contraction in Q4 2024, according to the Instituto Nacional de Estadistica Geografia e Informatica (INEGI).
New
2025.01.31 03:09Dow Jones Industrial Average middles on Thursday after mixed data and earnings
The Dow Jones Industrial Average (DJIA) churned on Thursday, marking in tracks around 44,700 but sticking close to the day's opening bids.
New
2025.01.31 02:06AUD/USD neutral as US GDP data misses expectations
The AUD/USD pair stands neutral around 0.6235 on Thursday, struggling to gain traction ahead of the US Q4 GDP data release.
New
2025.01.31 01:15USD/JPY falls as US GDP misses estimates bolstering Yen
The USD/JPY retreats in early trading during the North American session after economic data showed the US economy grew lower than expected a day after the Federal Reserve (Fed) decided to keep rates unchanged.
New
2025.01.31 00:16Gold challenges record highs post ECB, US GDP
XAU/USD trades dangerously close to its record high in the $2,790 region as the latest macroeconomic developments put pressure on the US Dollar (USD).
New
2025.01.31 00:09CTAs will continue to buy Silver - TDS
While a few false dawns have emerged in the past, spot and futures prices are both finally breaking out of the wedge that has contained Silver markets from the 2024's local top not reached since 2012, TDS' Senior Commodity Strategist Daniel Ghali notes.
New
2025.01.31 00:08Gold reaches new all-time highs - TDS
Gold prices are pushing to new all-time highs as we expected, TDS' Senior Commodity Strategist Daniel Ghali notes.
New
2025.01.31 00:04USD/CAD trades subduedly above 1.4400 despite US Dollar slides after US data
The USD/CAD pair trades in a subdued manner above the key support of 1.4400 in Thursday's North American session.
New
2025.01.30 23:25Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
