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AI-Enhanced Forex News Archive

Professional trading insights from Wednesday, January 7, 2026

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News Statistics for Wednesday, January 7, 2026

8
Total Articles
2
Bullish
3
Bearish
3
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Archive date: Wednesday, January 7, 2026

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Forexlive

The bond market is quiet but it won't stay that way

There are some major events coming that could spark a rethink about the current consensus outlook, which is something like:A moderate acceleration in growthSteady to slightly worsening jobs market2-3 Fed rate cuts in 2026Declining inflation10-12% equity market gainsThat's a cut-and-paste forecast for most years and it's such a consensus call this year that it's dangerously complacent, especially in a Trump-run world.The trade so far in 2026 has mostly been 'risk on' but if you zoom way in on...
Source: Finnhub
Forexlive

Oil inventories surge: USD strengthens as crude drops to $56.34

WTI crude oil has plummeted $0.80 (1.4%) to $56.34 following unexpectedly bearish EIA inventory data. While crude inventories drew down by 3.832 million barrels versus an expected build of 447,000 barrels, the report revealed massive product builds that overshadowed the headline draw. Gasoline inventories surged by 7.702 million barrels, more than double the expected 3.186 million build, while distillates jumped 5.594 million barrels against expectations of 2.109 million. These substantial product builds signal weakening demand outlook and will likely pressure crude consumption going forward. The bearish inventory report is strengthening the US dollar against commodity-linked currencies, with USD/CAD gaining 0.5% as Canada's oil-dependent economy faces headwinds. Technical indicators suggest WTI could test support at $55.50, with further downside targeting the $54.00 level if product inventories continue building at this pace.
USDCAD
Sentiment: Very Negative
Source: Finnhub
investing.com

USD/JPY eyes breakout as positive US data expected to fuel rally

USD/JPY is consolidating near recent highs with analysts anticipating that upcoming positive US economic data could trigger the next significant leg higher in the pair. The dollar-yen pair has been supported by diverging monetary policies between the Federal Reserve and Bank of Japan, with the Fed maintaining a hawkish stance while the BOJ continues its ultra-accommodative policy. Market positioning suggests traders are building long USD/JPY positions ahead of key US data releases this week, including retail sales and manufacturing indicators. Technical analysis shows the pair forming a bullish flag pattern with resistance at 150.50 and support at 149.20. A break above resistance could accelerate gains toward the 151.50 level, particularly if US data surprises to the upside. Gold prices have remained inversely correlated with USD/JPY strength, declining as the dollar gains momentum. Traders should monitor upcoming US economic releases closely as positive surprises could provide the catalyst for renewed yen weakness.
USDJPY
Sentiment: Very Positive
Source: Marketaux
Forexlive

USD Stalls in Tight Ranges as Major Pairs Trade Within 50-Pip Bands

The US dollar remained virtually unchanged during the early US session, with major currency pairs confined to exceptionally narrow trading ranges. EURUSD oscillated within a mere 30-pip range, while GBPUSD moved just 35 pips from low to high. USDJPY showed the broadest movement at 50 pips, matched by AUDUSD, while USDCHF, USDCAD, and NZDUSD traded in even tighter bands of 24, 26, and 22 pips respectively. This lack of directional momentum reflects a cautious market environment as traders await fresh catalysts. The subdued price action suggests consolidation patterns across the board, with neither bulls nor bears able to establish control. Technical traders face challenging conditions with limited opportunities for momentum-based strategies. The narrow ranges indicate potential for a volatility expansion once key economic data or central bank communications provide direction, making current levels critical for establishing positions ahead of potential breakouts.
EURUSD GBPUSD USDJPY USDCHF USDCAD AUDUSD NZDUSD
Sentiment: Neutral
Source: Finnhub
investing.com

EUR/USD and FTSE 100: Key technical setups for active traders

EUR/USD and the FTSE 100 index are presenting compelling technical trading opportunities as markets navigate early 2026 volatility. EUR/USD has been consolidating in a tight range between 1.0420-1.0480, with traders awaiting a decisive breakout to determine the next directional move. The pair faces resistance at the 50-day moving average (1.0485) while support holds at the December low of 1.0415. A break below support could accelerate selling toward 1.0350, while clearing resistance opens the path to 1.0550. Meanwhile, the FTSE 100 correlation with GBP/USD movements suggests currency traders should monitor UK equity performance for sterling direction clues. Technical indicators show EUR/USD RSI hovering near 48, indicating neutral momentum that could shift rapidly with upcoming ECB and Fed policy communications. Traders are advised to watch for volume confirmation on any breakout attempts, as false breaks have been common in recent sessions.
EURUSD GBPUSD
Sentiment: Positive
Source: Marketaux
investing.com

EUR/USD Weakens on Diverging ECB-Fed Policy Expectations

EUR/USD declined as markets price in increased ECB easing risks while Federal Reserve rate cut expectations diminish. The pair faced selling pressure as investors anticipate the European Central Bank may accelerate its accommodative stance amid sluggish Eurozone growth concerns. Simultaneously, resilient US economic data has reduced market expectations for aggressive Fed rate cuts in 2024, supporting dollar strength. Gold prices also retreated alongside the euro weakness, while the Dollar Index strengthened, confirming broad USD demand. Oil markets showed mixed signals, adding to the complex fundamental backdrop. Technical indicators suggest further downside potential for EUR/USD, with key support levels being tested. The diverging monetary policy outlook between the ECB and Fed remains the primary driver, with the ECB potentially cutting rates more aggressively than previously anticipated. Traders should monitor upcoming ECB communications and US economic releases for confirmation of this policy divergence trend.
EURUSD
Sentiment: Negative
Source: Marketaux
Forexlive

EUR/USD steady at 1.0400 as Eurozone inflation hits 2.0% target

EUR/USD remains unchanged around 1.0400 following the release of Eurozone's December preliminary CPI data, which came in at 2.0% year-over-year, matching market expectations and down from November's 2.1%. Core inflation eased to 2.3% from the previous 2.4%, slightly below the forecast of 2.4%. Despite headline inflation reaching the ECB's target, services inflation remains elevated at 3.4%, suggesting persistent price pressures in this sector. The data reinforces market expectations that the ECB will maintain a cautious approach to monetary policy easing in early 2024. Technical indicators show EUR/USD consolidating near the 1.0400 psychological level, with immediate resistance at 1.0430 and support at 1.0370. Traders await upcoming ECB officials' speeches and US economic data for further directional cues, with the pair likely to remain range-bound until clearer monetary policy signals emerge from either central bank.
EURUSD
Sentiment: Neutral
Source: Finnhub
Forexlive

USD/CNY faces pressure as China's gold reserves surge for 14th month

China's gold reserves reached 74.15 million troy ounces in December, marking the 14th consecutive monthly increase and valued at $319.45 billion, up from $310.65 billion in November. This persistent accumulation, which began in November 2024, reflects China's strategic diversification away from USD-denominated assets, potentially weighing on USD/CNY. The People's Bank of China's gold buying spree has been instrumental in supporting global gold prices while simultaneously reducing reliance on US dollar reserves. This trend suggests continued yuan strength against the dollar as Beijing signals confidence in alternative reserve assets. Technical indicators show USD/CNY testing support at 7.2500, with further downside possible if China maintains its gold accumulation pace. The move aligns with broader de-dollarization efforts among major economies, potentially limiting dollar strength in Asian trading sessions.
USDCNY
Sentiment: Negative
Source: Finnhub

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