# ?? Daily Forex Market Update: January 23, 2025

?? US Dollar Continues to Strengthen

The Dollar Index (DXY) climbed to 108.50 from 107.90 following the release of December's Leading Economic Indicators (LEI), which contracted by 0.1%. This decline reflects weakening consumer confidence, decreased manufacturing orders, and rising unemployment claims.

?? Gold and Oil Markets Under Pressure

Gold prices retreated to $2,750 per ounce amid dollar strength, while WTI crude oil remains under pressure, trading at $75 per barrel due to global demand concerns.

?? Major Currency Pair Analysis

- EUR/USD: Trading within a narrow range of 0.9700-1.0500, showing bearish short-term momentum due to sluggish Eurozone economic indicators.

- USD/JPY: Touched a high of 156.70, with markets closely monitoring tomorrow's Bank of Japan meeting for potential policy adjustments.

- AUD/USD: Declined to 0.6260 from 0.6300, reflecting concerns about China's economic slowdown and its impact on Australian exports.

- USD/CAD: Moving within the 1.4320-1.4385 range, awaiting Canadian retail sales data.

?? Key Market Drivers to Watch

1. US weekly unemployment claims release, which will provide insights into labor market conditions

2. President Trump's address at the World Economic Forum, potentially influencing market sentiment

3. Canadian retail sales, expected to show a 0.2% increase in November

4. Bank of Japan (BOJ) monetary policy meeting tomorrow, which could impact yen valuation

?? Market Perspective

Financial markets remain volatile due to ongoing economic and geopolitical factors. Investors are advised to closely monitor the BOJ meeting and key economic indicators to assess short-term investment opportunities. Currency pairs may experience increased volatility as markets digest these significant events.