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AI-Enhanced Forex News Archive

Professional trading insights from Friday, January 16, 2026

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News Statistics for Friday, January 16, 2026

11
Total Articles
4
Bullish
5
Bearish
2
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Archive date: Friday, January 16, 2026

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Forexlive

Trump says he 'great respects' that Iran have been cancelled

Oil prices are under some pressure after Trump writes:I greatly respect the fact that all scheduled hangings, which were to take place yesterday , have been cancelled by the leadership of Iran. Thank you!Iran is a brutal regime that's quickly sentenced people to death for protesting poor economic conditions. It's not clear if the US wants to get involved in a war though and we will be watching for signs.
Source: Finnhub
Forexlive

USD Industrial Production Surges 0.4% Beating Forecasts

The US dollar strengthened across major pairs following December's industrial production data, which rose 0.4% versus 0.1% expected, marking a significant beat. November's figure was also revised higher to 0.4% from 0.2%, reinforcing the narrative of US economic resilience. Capacity utilization improved to 76.3% from 76.0%, while manufacturing production expanded 0.2% against expectations of a 0.2% contraction. This robust data adds to the string of positive US economic indicators, supporting the Federal Reserve's cautious stance on rate cuts and widening interest rate differentials versus other major currencies. The data particularly boosted USD/JPY toward 157.00 resistance and pressured EUR/USD below 1.0300. Traders should monitor upcoming retail sales and employment data for continued dollar strength confirmation, with key technical levels at 104.50 on the DXY index serving as immediate resistance.
EURUSD USDJPY DXY
Sentiment: Very Positive
Source: Finnhub
investing.com

USD Dominance Driven by Strong Data and Wide Rate Spreads

The US dollar maintains its bullish trajectory against major currencies, with EUR/USD trading near multi-month lows and USD/JPY holding elevated levels above 156.00. The dollar's strength stems from consistently robust US macroeconomic data contrasting with weaker global counterparts, particularly in Europe and Japan. Interest rate differentials remain the primary driver, with the Federal Reserve maintaining a hawkish bias while the ECB faces growth concerns and the BoJ struggles with ultra-loose policy normalization. Gold prices have retreated below $2,650 as real yields rise alongside dollar strength. The DXY index hovers near 109.00, approaching year-to-date highs. Technical indicators suggest continued dollar momentum, with EUR/USD targeting 1.0250 support and USD/JPY eyeing 157.50 resistance. Traders should focus on upcoming US retail sales and any shifts in central bank communications that could alter current rate spread dynamics.
EURUSD USDJPY DXY XAUUSD
Sentiment: Very Positive
Source: Marketaux
investing.com

USD/JPY: Weak Yen Persists Amid BoJ Hesitation and Carry Flows

USD/JPY continues its ascent toward 157.00 as the yen remains under pressure from the Bank of Japan's cautious approach to policy normalization. Despite verbal intervention attempts from Japanese officials, the pair has gained 2.5% month-to-date, driven by attractive carry trade dynamics with US-Japan rate differentials exceeding 4.5%. S&P 500 futures holding near record highs signal risk-on sentiment supporting carry trades, while crude oil's rise above $79/barrel adds inflationary pressure weighing on the yen. The BoJ's reluctance to aggressively hike rates, citing wage growth uncertainties, contrasts sharply with the Fed's higher-for-longer stance. Technical analysis shows strong momentum with RSI approaching overbought territory at 68. Key resistance lies at 157.50 (2024 high), while support forms at 155.80. Traders should monitor BoJ Governor Ueda's upcoming speeches for any hawkish shifts that could trigger rapid yen appreciation.
USDJPY
Sentiment: Very Positive
Source: Marketaux
investing.com

USD/JPY Falls as Yen Strengthens on Multiple Market Catalysts

USD/JPY has declined during the Asian trading session as the Japanese yen gained strength across the board following a confluence of market developments. The pair retreated from recent highs near 157.00, with selling pressure intensifying amid speculation of potential Bank of Japan policy adjustments and safe-haven flows. Market participants are closely monitoring Japanese economic indicators and global risk sentiment, which have been supporting yen demand. Technical analysis shows USD/JPY facing immediate support at the 156.00 psychological level, with the 50-day moving average at 155.50 providing additional downside target. Resistance remains at 157.00, where selling interest has emerged repeatedly. Traders should watch for any BoJ commentary or shifts in global risk appetite that could accelerate yen strength. The current market dynamics suggest continued volatility for USD/JPY, with downside risks prevailing in the near term as long as the pair remains below the 157.00 resistance zone.
USDJPY
Sentiment: Negative
Source: Marketaux
Forexlive

EUR/USD edges lower as Italian CPI confirms 1.2% inflation expectations

EUR/USD has slipped 0.1% to 1.0825 following Italy's December CPI data, which came in line with preliminary estimates at 1.2% year-over-year. The confirmation of Italian inflation data, combined with stable core inflation at 1.7%, suggests moderate price pressures in the eurozone's third-largest economy. Italy's 2025 inflation forecast of 1.5% represents an increase from 2024's 1.0%, potentially supporting the European Central Bank's gradual policy normalization. However, the relatively modest inflation figures compared to the ECB's 2% target may limit euro upside potential. Technical indicators show EUR/USD testing support at 1.0820, with resistance at 1.0850. Traders are awaiting broader eurozone inflation data and ECB policy signals for clearer directional cues. The pair's near-term trajectory will likely depend on upcoming US economic releases and any divergence in Fed-ECB policy expectations.
EURUSD
Sentiment: Neutral
Source: Finnhub
investing.com

De-Dollarization Efforts Fail as USD Maintains Global Reserve Status

Despite ongoing rhetoric about de-dollarization from BRICS nations and alternative payment systems, the US dollar's dominance in global forex markets remains unchallenged. EUR/USD trades near 1.0280, down 4% year-over-year, while USD/JPY holds above 156.00, reflecting persistent dollar strength. The DXY index near 109.00 underscores the greenback's broad appreciation against major currencies. Recent data shows the dollar still comprises over 58% of global foreign exchange reserves, with no meaningful decline despite geopolitical tensions. The euro's share remains stagnant near 20%, while the Chinese yuan struggles below 3% despite internationalization efforts. Strong US economic fundamentals, deep capital markets, and the Fed's credibility continue attracting global capital flows. Technical patterns suggest further dollar strength, with DXY targeting 110.00 resistance. Traders should focus on actual capital flows rather than de-dollarization headlines when positioning in major forex pairs.
EURUSD USDJPY DXY
Sentiment: Positive
Source: Marketaux
forexcrunch.com

EUR/USD Bears Target 1.0250 on Fed-ECB Policy Divergence

EUR/USD extended its decline to 1.0275, down 0.4% intraday, as diverging central bank policies weigh heavily on the pair. The catalyst was stronger-than-expected US jobless claims falling to 201K versus 218K forecast, combined with upbeat PPI data showing 0.4% monthly gain and retail sales surprising to the upside at 0.6% growth. This data reinforces the Federal Reserve's patient approach to rate cuts, contrasting sharply with ECB officials signaling potential accelerated easing amid eurozone growth concerns. Technical indicators show bearish momentum accelerating, with the pair breaking below the 1.0300 psychological support. The 50-day moving average at 1.0340 now acts as resistance. Immediate support lies at 1.0250 (December 2023 low), with a break potentially opening the path to 1.0200. RSI at 35 suggests oversold conditions approaching, but fundamental divergence favors continued euro weakness against the resilient dollar.
EURUSD
Sentiment: Very Negative
Source: Marketaux
investing.com

USD/JPY drops on Bank of Japan intervention warnings amid 150 resistance

USD/JPY has retreated 0.8% (120 pips) to 149.20 following renewed verbal intervention from Japanese officials, with Finance Minister warning of potential market action to curb excessive yen weakness. The pair had approached the psychologically important 150 level, prompting concerns about official intervention similar to actions taken in late 2024. Market positioning data shows speculative long positions in USD/JPY near multi-year highs, increasing vulnerability to sharp reversals. The Bank of Japan maintains its ultra-loose monetary policy stance, though Governor Ueda hinted at potential policy adjustments if inflation sustainably reaches the 2% target. Technical indicators suggest the pair faces strong resistance at 150.50, with immediate support at 148.80 (50-day moving average). Traders are closely monitoring Japanese officials' rhetoric, as actual intervention could trigger a swift move toward 147.00, while absence of action might embolden bulls to test 151.00.
USDJPY
Sentiment: Negative
Source: Marketaux
investing.com

GBP/USD head and shoulders pattern targets 1.3250 on technical breakdown

GBP/USD has declined 0.5% (65 pips) to 1.3385 as a bearish head and shoulders pattern nears completion, suggesting potential for further downside toward 1.3250. The neckline support at 1.3380 is under pressure, with a confirmed break below this level likely to accelerate selling pressure. The pattern formed over the past three weeks, with the right shoulder completing at 1.3485 resistance. UK economic data remains mixed, with services PMI holding above 50 but manufacturing sector showing continued contraction. The Bank of England's cautious stance on rate cuts, despite slowing inflation, has failed to provide meaningful support for sterling. Technical momentum indicators including RSI and MACD show bearish divergence, reinforcing the negative outlook. Key support levels to watch include 1.3300 (December low) and the pattern target at 1.3250, while resistance stands at 1.3430 (20-day moving average) and 1.3485 (pattern high).
GBPUSD
Sentiment: Very Negative
Source: Marketaux
Forexlive

USD/JPY falls as Japan threatens joint intervention with US on yen weakness

USD/JPY declined 0.8% to 155.20 as Japan's Finance Minister warned of potential joint intervention with the United States to support the yen. The minister stated Japan 'won't exclude any options,' intensifying market fears of coordinated action. Adding to yen strength, speculation grows around earlier-than-expected Bank of Japan rate hikes, with markets pricing in a 65% probability of a move by March. MUFG analysts project modest rises in Indian bond yields as the RBI approaches the end of its easing cycle. Technical indicators show USD/JPY breaking below the 156.00 support level, with the next key support at 154.50. The 50-day moving average at 154.80 may provide interim support. Traders should monitor upcoming BOJ communications and any signs of actual intervention, which could trigger sharp yen appreciation and further USD/JPY downside toward the 153.00 zone.
USDJPY
Sentiment: Negative
Source: Finnhub

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