# ?? Forex Market Update - January 15, 2025 (IST 22:00 / GST 20:30)
Harnam Prajapati
Regional Manager at Vt markets Strategy & Growth | International Business development & Sales | Sales Operations | Key Account Management | Client Services.
## ?? Market Overview
Global financial markets are exhibiting cautious movement within narrow ranges as investors await the U.S. Consumer Price Index (CPI) data release scheduled for 10:00 AM EST. The U.S. dollar continues to demonstrate strength, reflecting market expectations that the Federal Reserve will maintain elevated interest rates for an extended period.
## ?? Major Currency Pairs Movement
### EUR/USD ??
The Euro/Dollar pair has reached a two-year low, trading below 1.0200. This decline is primarily attributed to rising U.S. Treasury yields, which have created significant downward pressure on the Euro.
### USD/JPY ??
The Japanese Yen is showing signs of appreciation following Bank of Japan (BOJ) Governor Ueda's signals regarding potential interest rate adjustments. The Governor indicated that rate hikes could be considered if economic conditions and inflation trends continue their positive trajectory.
### GBP/USD ??
Sterling maintains a bearish trend near 1.2200. Market participants are closely monitoring today's UK CPI announcement, with analysts projecting a year-over-year increase of 2.7%.
### USD/INR ??
The Indian Rupee has depreciated amid market volatility, prompting the Reserve Bank of India (RBI) to implement careful management of international reserves.
## ?? Critical Factors to Monitor
1. U.S. CPI Data Release - A pivotal market direction indicator
2. ECB Executive Speeches - Statements from de Guindos and Villeroy
3. Eurozone Industrial Production Data (17:00 GST)
4. Federal Reserve Beige Book Report (02:00 GST, January 16)
5. Trump Economic Team's Proposed Gradual Import Tariff Adjustment Policy
## ?? Near-Term Market Outlook
Markets maintain a cautious stance ahead of the U.S. inflation data, which will serve as a crucial indicator for the Federal Reserve's monetary policy direction in 2025. Should inflation figures exceed market expectations, the Fed may delay its interest rate reduction plans, potentially leading to continued dollar strength.