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AI-Enhanced Forex News Archive

Professional trading insights from Friday, January 2, 2026

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News Statistics for Friday, January 2, 2026

8
Total Articles
2
Bullish
3
Bearish
3
Neutral

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Archive date: Friday, January 2, 2026

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Forexlive

USD weakens as gold surges 2% and silver jumps 4% on safe-haven demand

Gold has surged nearly 2% to $4,393 while silver rallied over 4% to $74.38, pressuring the US dollar across major pairs as precious metals continue their December momentum into the new year. The dollar index (DXY) is showing weakness as traders rotate into commodities, with EUR/USD gaining 0.15% and GBP/USD advancing 0.2% in early trading. US futures are trading higher, suggesting risk-on sentiment, though the simultaneous precious metals rally indicates underlying concerns about dollar debasement and inflation. The sustained commodity rally since December reflects growing market expectations of continued monetary accommodation and potential fiscal stimulus in 2026. Technical indicators show gold breaking above the $4,350 resistance level, opening the path toward $4,450, while silver's breakout above $72 targets the $76-78 zone. For forex traders, continued precious metals strength could maintain downward pressure on the dollar, particularly against commodity currencies like AUD and CAD.
EURUSD GBPUSD AUDUSD USDCAD
Sentiment: Negative
Source: Finnhub
Forexlive

EUR/USD pressured as Spain manufacturing PMI contracts unexpectedly

EUR/USD faced renewed selling pressure in early European trading as Spain's manufacturing sector unexpectedly slipped back into contraction territory. The December PMI reading of 49.6 fell short of the 51.0 forecast and declined sharply from November's 51.5, marking the first contraction since April. The disappointing data reflects weakening demand conditions across the eurozone's fourth-largest economy, with manufacturers reporting significant declines in both output and new orders. Employment conditions deteriorated markedly as companies opted against renewing temporary contracts, resulting in the steepest monthly job losses in two years. This weakness in Spanish manufacturing adds to concerns about eurozone economic momentum heading into 2025, potentially limiting the European Central Bank's ability to pause its easing cycle. Technical indicators show EUR/USD testing support near 1.0420, with further downside risks if eurozone-wide PMI data disappoints.
EURUSD
Sentiment: Negative
Source: Finnhub
forexcrunch.com

GBP/USD Bulls Target 1.40 as Dollar Weakens on Policy Divergence

GBP/USD has surged to 1.3490, gaining momentum as the US dollar faces broad-based weakness to start 2026. The pair's bullish trajectory is supported by diverging monetary policy expectations between the Bank of England and Federal Reserve. Markets are pricing in a more hawkish stance from the BoE amid persistent UK inflation concerns, while anticipating potential Fed rate cuts later this year. Technical indicators suggest strong bullish momentum, with the pair breaking above the 1.3450 resistance level that had capped gains in late 2025. The next major resistance lies at the psychological 1.40 level, representing a potential 3.8% upside from current levels. Support has formed at 1.3420, coinciding with the 50-day moving average. Traders should monitor upcoming UK inflation data and Fed officials' commentary for further directional cues, as sustained dollar weakness could accelerate the pound's advance toward multi-year highs.
GBPUSD
Sentiment: Very Positive
Source: Marketaux
investing.com

FX market sentiment mixed as commodities surge, indices heavily bought

Foreign exchange markets displayed mixed sentiment patterns entering 2025, with notable divergence across major currency pairs. Market positioning data reveals extremely bullish commodity exposure, supporting commodity-linked currencies like AUD and CAD against traditional safe havens. EUR/USD sentiment remains neutral despite recent volatility, while GBP/USD faces headwinds from persistent UK economic uncertainties. USD/JPY continues to attract buying interest as the Bank of Japan maintains its ultra-loose monetary stance, contrasting with the Federal Reserve's hawkish pivot. The extreme long positioning in commodities, particularly energy and metals, suggests potential spillover effects into resource-dependent currencies. Risk-on sentiment dominates equity indices with heavy buying flows, potentially limiting demand for defensive currencies like CHF and JPY. Traders should monitor commodity price action closely as any reversal could trigger significant FX realignments, particularly in AUD/USD and USD/CAD pairs.
EURUSD GBPUSD USDJPY AUDUSD USDCAD
Sentiment: Neutral
Source: Marketaux
forexcrunch.com

AUD/USD surges on hawkish RBA stance, rate hike risks resurface

AUD/USD kicked off 2025 with strong bullish momentum, climbing 0.6% to test 0.6750 resistance as the Reserve Bank of Australia adopted a surprisingly hawkish tone. The RBA's latest policy communications indicate growing concerns about persistent inflation pressures, with officials explicitly acknowledging that rate hikes remain on the table. This marks a significant shift from the neutral stance maintained through late 2024, catching markets positioned for potential easing off-guard. Australian inflation data continues to run above the RBA's 2-3% target band, particularly in services sectors, forcing policymakers to reconsider their patient approach. The hawkish pivot contrasts sharply with dovish expectations for other major central banks, widening yield differentials in AUD's favor. Technical analysis shows AUD/USD breaking above its 50-day moving average at 0.6720, with momentum indicators suggesting further upside toward 0.6800 if the current rally extends.
AUDUSD
Sentiment: Very Positive
Source: Marketaux
Forexlive

USD/KRW surges as Bank of Korea warns weak won threatens inflation stability

USD/KRW continues its upward trajectory, trading near multi-year highs as the Bank of Korea expressed concerns about the won's persistent weakness potentially fueling inflationary pressures. The central bank warned that the currency's divergence from economic fundamentals poses risks to price stability, suggesting possible intervention measures ahead. Meanwhile, broader risk sentiment improved after Trump administration backtracked on proposed Italian pasta tariffs following industry resistance, easing some trade tension concerns. Australian economic data provided regional support with Manufacturing PMI holding steady at 51.6 in December, maintaining expansion territory. The won's depreciation reflects ongoing dollar strength and concerns about South Korea's export competitiveness amid global trade uncertainties. Technical indicators suggest USD/KRW faces immediate resistance at recent highs, while any BOK intervention could provide temporary support for the won. Traders should monitor upcoming BOK policy statements for potential currency stabilization measures.
USDKRW AUDUSD
Sentiment: Negative
Source: Finnhub
Forexlive

EUR/USD slips 0.2% as US scales back Italian pasta tariffs significantly

EUR/USD declined 0.2% to 1.0830 in early Thursday trading as the dollar strengthened following the US Commerce Department's decision to dramatically reduce proposed antidumping duties on Italian pasta imports. Initial tariffs of up to 92% were slashed to just 2.3% for La Molisana and 13.9% for Garofalo, with most producers facing only 9.1% duties. This significant policy reversal eases trade tensions between the US and Italy, reducing pressure on the euro from potential retaliatory measures. The move suggests a more pragmatic approach to trade policy, potentially stabilizing transatlantic trade relations. Technical indicators show EUR/USD finding support at 1.0820, with resistance at 1.0865. The reduced tariffs may limit further euro weakness, though the separate 15% US tariff on Italian pasta exports remains in effect, keeping some downward pressure on the currency pair.
EURUSD
Sentiment: Neutral
Source: Finnhub

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