Forex News: Forex Market Stability in the Final Week of January 2024

In the fast-paced world of forex trading, staying ahead of the curve is not just an advantage but a necessity. Every twist and turn in the global economic landscape can send ripples through the currency markets, making real-time information a trader’s most valuable asset. In this ever-changing environment, being well-versed in the latest forex news isn’t just about staying informed; it’s about making informed decisions that can significantly impact your trades.

According to Daily Forex, here are a few insights and potential trends to keep an eye on in the forex market. 

Low Volatility in Forex: A Calm Start

Last week, the Forex market experienced a significant lack of directional volatility. Most currency pairs remained relatively stable, with only one major pair showing fluctuations of more than 1%. This subdued volatility set the tone for the week, creating an environment where currency values were relatively steady.

The Fed and BoE Meetings

The highlight of last week’s agenda was undoubtedly the policy meetings of two major central banks – the Federal Reserve and the Bank of England (BoE). The BoE’s decisions didn’t bring any surprises to the table. However, the Federal Reserve meetings set the stage for significant market shifts.

Key US Data Sparks Sentiment Shifts

Two critical US economic indicators, JOLTS Job Openings, and CB Consumer Confidence, had a notable impact on market sentiment. Both pointed towards a more robust performance by the US economy than anticipated. The real game-changers, though, were the staggering non-farm payrolls released on Friday and the unexpected strength in average hourly earnings. These indicators indicated a US economy that’s still running hot despite concerns about falling inflation. Of particular note was the remarkable 0.6% month-on-month increase in average hourly earnings.

Strong US Dollar and Weakening Australian Dollar

The Forex market reflected the strong performance of the US economy, with the US Dollar emerging as a dominant force. On the flip side, the Australian Dollar emerged as the weakest major currency, although the impact might be nuanced due to the relatively small numbers involved. While the US Dollar showed signs of short-term bullish momentum, it lacked a clear long-term trend and remained susceptible to consolidation.

Last Week’s Data Releases

  • US Revised UoM Consumer Sentiment: Met market expectations, providing insights into the confidence levels of American consumers.
  • Australian CPI (Inflation): Fell to 3.4%, below expectations, impacting the Australian Dollar as it depreciated on the lower-than-anticipated inflation figures.
  • Canadian GDP: Showed a slight upside surprise, exceeding expectations marginally and reflecting positively on the country’s economic health.
  • Chinese Manufacturing PMI: Held steady, in line with expectations, indicating stability in the country’s manufacturing sector.
  • US ISM Manufacturing PMI: Outperformed expectations, signaling strength in the overall US manufacturing sector.
  • US Employment Cost Index: This was slightly below expectations, offering insights into inflationary pressures.
  • US Unemployment Claims: Experienced a slight increase, deviating marginally from expectations, providing clues about the dynamics of the labor market.


The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell, or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision.

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