FOREX TODAY: AS THE WEEK BEGINS, MARKETS ARE STILL TRANQUIL.

WHAT YOU NEED KNOW ON MONDAY, JANUARY 22 IS AS FOLLOWS:

Early on Monday, major currency pairings trade within well-known ranges as investors remain cautious ahead of the major macroeconomic events of the week. There won't be any major data releases on the economic calendar. The Bank of Japan (BoJ) will make its monetary policy announcements during the Asian session on Tuesday, while the Bundesbank of Germany will deliver its monthly report during European trading hours.

After rising by almost 1% the week before, the US Dollar (USD) Index moves in a narrow trend above 103.00, while the yield on the benchmark 10-year US Treasury note remains above 4%. In the meantime, futures for the US stock index are starting the week slightly higher.

THE CURRENT US DOLLAR PRICE

The US dollar's (USD) percentage change compared to a list of major currencies is displayed in the table below. The US dollar underperformed the euro the most.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

The broad-based rise of the USD put pressure on EUR/USD, which ended the week lower. President of the European Central Bank (ECB) Christine Lagarde made a statement at the World Economic Forum (WEF) in Davos on Friday. She did not address the forecast for monetary policy in the near term, but she did point out that inflation was declining both globally and in the Eurozone. The pair stays steady at 1.0900 early on Monday.

On Friday, the USD/JPY reached its highest level since late November at 148.80, but it quickly gave up those gains, closing the day flat at just over 148.00. In a narrow channel, the pair moves up and down in proximity to the weekly closing level.

“If the BoJ makes it clear that it does not intend to change its expansionary course for the time being – which we believe is likely – USD/JPY could rise a little further,” Commerzbank analysts said, providing a preview of the possible impact of the BoJ event on the pair.

Following a week of slight losses, GBP/USD appears to have entered a consolidation period on Monday, trading around roughly 1.2700. The next significant data releases from the UK will be the Services and Manufacturing PMIs on Wednesday.

Even if Gold gained on Thursday and Friday, it still dropped by almost 1% the week before. XAU/USD continues to decline early on Monday; at $2,020, it had lost almost 0.5% of its value thus far.

For the third straight week, the Australian dollar fell against the US dollar, and on Monday it traded in a narrow range below 0.6600 during the Asian session. On Tuesday, National Australia Bank will make available data for December on business conditions and business confidence.