XE Market Analysis: Europe – Jan 26, 2018

The dollar has ebbed back some after rallying after the London close yesterday at the prompt of Trump, who said from Davos that he favoured a strong dollar “ultimately.” EUR-USD settled around 1.2250, up from the post-Trump low at 1.2364. USD-JPY retreated to around 109.00, down from 109.77. The dollar has seen a similar ebb versus sterling, the Australian dollar, and other currencies. Japanese inflation data had little impact, with headline December CPI lifting to 1.0% y/y from 0.6% y/y, and the core CPI figure rising to 0.9% y/y, which matched expectations.