Forex Daily Forecast, Analysis and Prediction

In my analysis of the commodity markets, I am drawn to the copper chart, mainly because we have been in the area of “fair value” for the last seven or eight months.

Despite the fact that the day started out rather positively for the euro, the reality is that it simply cannot hang on to gains. The Consumer Price Index had a chance of helping the euro, as it came in at 0.23% instead of 0.3%. The market is likely to look at this, at the very least, as a good sign or a potential cooling off of the US dollar. However, we have a keep in mind that the Federal Reserve still has a long way to go before they start loosening monetary policy, while the European Central Bank looks absolutely feckless at this point in time, and there’s almost no chance they would tighten monetary policy.

During the Wednesday session, we saw the S&P 500 rally rather significantly, as market participants continue to pay close attention to the inflationary issues in the United States.

In my daily analysis of exotic currency pairs, the USD/PHP market has captured my attention, as we are hanging around just above the 50 Day EMA. The 50 Day EMA of course is an indicator that a lot of people pay close attention to, so that might have caused a little bit of technical support. However, there’s also another thing that needs to be considered, and that is that the US dollar has recovered quite nicely. It’s not only against the Philippine peso that you can see this, but against pretty much anything in Asia.

During the trading session on Wednesday, we saw the US dollar drop fairly significantly against the Japanese yen, pressuring the pair to drop just below the ¥156 level

The USD/RUB has come off early 2025 highs and is now trading within sight of potentially important psychological support as it traverses near 102.4800 as of this writing.

The Nasdaq 100 exploded to the upside during the trading session on Wednesday, mainly due to its oversold nature

Bitcoin rallied pretty significantly during the trading session on Wednesday, gaining 3% as we started to close out the New York session. We are approaching the $100,000 level and therefore I think we've got a couple of things to pay attention to. Could we get a pullback from here? It's very possible, but I think that just ends up attracting more buyers

During the trading session on Wednesday, we saw quite a bit of volatility in this pair with the US dollar plunging after the CPI came in cooler than anticipated, with a core CPI reading of 0.23% month over month instead of the expected 0.3%. However, the fundamentals in this pair have not changed. This is still a holding pattern between now and the Trump administration taking over in about five days

The US dollar plunged in the early hours on Wednesday against the Swiss franc to reach below the 0.91 level.

The USD/INR has shown price velocity again the past few days, this as the currency pair has been ‘allowed’ to correlate to global Forex conditions by the Reserve Bank of India.

The US dollar fell against the Canadian dollar during the trading session on Wednesday after the CPI numbers came out much lower than anticipated, reading 0.23% instead of 0.3% month over month in the United States

The GBP/USD pair remained on edge after reports from the UK and the US showed that inflation was easing. In the UK, the headline Consumer Price Index (CPI) moved from 2.6% in November to 2.5% in December, lower than the expected 2.6%.

The EUR/USD exchange rate moved sideways after the US core inflation moved downwards slightly providing a big relief to investors. According to the statistics agency, the core consumer price index (CPI) dropped from 0.3% in November to 0.2%, lower than the median estimate of 0.3%. It dropped from 3.3% to 3.2% on a YoY basis.

Bitcoin price drifted upwards as a risk-on sentiment spread in the financial market on Wednesday.