The USD firms, oil prices slip, equity markets are mixed, and US yields rise on rising geopolitical tensions. The US dollar rebounded from recent lows, rising against the euro and Swiss franc as investors paused the “Sell America” trade ahead of President Trump’s closely watched speech in Davos. Markets remain sensitive to developments around US–EU trade tensions linked to Greenland, with the dollar’s near-term direction hinging on whether Trump signals de-escalation or reinforces the threat of further tariffs. Global equity markets were mixed as investors waited for President Trump’s speech at Davos for clues on whether tensions with Europe over Greenland may ease. European stocks declined, extending recent losses, while US futures and Chinese markets edged higher as calmer bond markets and hopes of a more conciliatory tone from Washington helped stabilize sentiment. Elsewhere, oil prices drifted lower amid softer risk sentiment and lingering demand concerns. In contrast, gold extended its rally to fresh record highs as safe-haven demand intensified, while Bitcoin remained under pressure, slipping below $90,000. Today's economic calendar is quiet, so focus will be on President Trump's Davos speech and ECB President Lagarde's comments to help drive intraday market direction.
In the news. Gold hits record as Trump heads to Davos for Greenland talks. The World Economic Forum is weighing moving its flagship event from Davos. The Supreme Court to hear arguments on Trump's bid to fire Fed's Lisa Cook. Iran seizes properties and businesses in a crackdown after unrest. Republicans begin to push back against Trump's pursuit of Greenland. Carney warns of 'rupture' to global order as Trump rattles allies. Saudi media steps up attacks on the UAE as Gulf rift deepens. Finance minister says Canada will not pay $1B US if it joins Trump's 'Board of Peace.' Britain & China to revive 'Golden Era' business dialogue during Starmer visit.
In currency markets. Against the US dollar, the Swiss franc slipped as investors pared safe-haven positions ahead of President Trump’s Davos speech, pausing the recent “Sell America” trade. The Japanese yen remained under pressure versus the dollar amid concerns over fiscal loosening and elevated government bond yields, despite expectations that the BoJ will hold policy steady. The Chinese yuan edged weaker as the PBoC set a slightly softer fixing, signalling tolerance for levels near 7.00 while maintaining tight control over volatility. CNY slips 0.1%, while Asian currencies fall 0.3% on average against the USD. Trading currencies are mixed, with CHF & CZK weakening 0.3%, DKK & PLN falling 0.2%, SEK, KWD, & JPY flat, MXN, NOK, AUD, & NZD gaining by 0.3%, and ZAR strengthening 0.45% against the USD.
In commodity markets. Oil prices slipped 0.4%. Natural Gas prices are flat. Gold prices rallied 2.1%. Silver prices up 0.2%. Coffee prices slipped 0.1%. Copper & Soybean prices strengthened 0.9%, while Wheat prices gained 0.6%.
CAD holds near two-week highs as the US dollar steadied ahead of President Trump’s speech at Davos, with investors pausing after a sharp bout of greenback selling linked to renewed trade tensions with Europe. Support from firmer oil prices and higher Canadian bond yields kept the loonie underpinned, while markets also looked ahead to Thursday’s key US inflation release — the core Personal Consumption Expenditures index — which will be a critical guide for the Federal Reserve’s policy outlook.
EURCAD eased in early trading as the Canadian dollar remained supported near recent highs while the euro consolidated after its recent advance. The pair is being shaped by a steadier US dollar ahead of President Trump’s Davos speech, lingering EU–US tensions over Greenland, and cautious positioning around the Bank of Canada outlook following mixed Canadian inflation signals.
EUR edged lower toward 1.1700 as the pair consolidated recent gains ahead of President Trump’s speech at the World Economic Forum in Davos. With no major data releases, investors remain focused on whether Trump signals de-escalation or reinforces tariff threats linked to Greenland, which could shape near-term US dollar sentiment and broader risk appetite.
GBPEUR edged lower, retreating from recent levels as euro strength pushed the cross down toward the 1.1450 area. Sterling’s initial boost from firmer UK CPI faded, while the euro stayed supported by firm ECB guidance and anticipation of comments later today from ECB President Christine Lagarde, alongside caution ahead of President Trump’s Davos speech.
GBP slipped back toward the 1.3400 area after mixed UK inflation data, with headline CPI accelerating to 3.4% but core inflation holding steady at 3.2%. The lack of upside follow-through reflects lingering expectations that the Bank of England can still cut rates later this year, while broader geopolitical developments and the US dollar’s near-term direction remain key drivers.
Payments International Inc., payment and foreign currency exchange services are provided by Ebury Partners Canada Limited. Payments International Inc. is partnered with Ebury Partners Canada Limited as a Programme Manager. "Ebury Partners Canada is registered as Money Services Business (“MSB”) with the Financial Transactions and Reports Analysis Centre (“FINTRAC”) (Reg. No.: M17949017) and licensed as an MSB with the Authorité des Marchés Financiers (“AMF”) (Licence No. 904066)".
