Forex Today: US Dollar Powers to New Multi-Year Highs

By Adam Lemon Created on January 13, 2025

The US Dollar is continuing to make gains as money flows out of risky assets and into the greenback as a haven, with its long-term yield rising to fresh highs.

Markets are currently dominated by a very strong US Dollar, which has continued to advance today towards fresh 2-year highs. Most currency pairs involving the US Dollar are hitting multi-year highs or lows depending upon the Dollar’s side of the pairing. The 10-Year US Treasury Yield closed Friday above 4.75%.
Stock markets are lower globally, with the S&P 500 Index close to a new 3-month low price. Stocks are falling due to a decline in risk sentiment and the US Dollar gaining almost everywhere.
The Forex market is in focus due to the strong US Dollar, with the Japanese Yen also exhibiting some relative strength. The weakest major currencies are the British Pound and the Australian Dollar. The GBP/USD currency pair has fallen sharply over the past few days and has today reached a new 1-year low, dragging the EUR/USD currency pair down to a new 2-year low just above $1.0200. The AUD/USD currency pair is not far from a 5-year low price. Trend and momentum traders will probably be most interested in being short of the EUR/USD and maybe also the GBP/USD. since today’s Tokyo open, the strongest currency has been the Japanese Yen while the weakest currency has been the British Pound.
Natural Gas futures and Corn futures closed Friday at multi-month highs and will attract interest from trend traders on the long side. Some analysts might argue that in the current strong USD environment, there is a tailwind against commodity advances.
The US 10-Year Treasury Yield has reached a new 6-month high and will attract interest from trend traders on the long side. Some CFD brokers offer this to traders, and micro futures are available on the CME.
The price of WTI Crude Oil has reached a new 4-month high, although the chart does not yet look fully bullish.