The US dollar weakened significantly against major currencies on January 10, 2025, as market participants speculated about a potential Federal Reserve rate hike pause following recent inflation data. The euro surged to a two-month high at 1.1125 against the dollar, reflecting optimism over the Eurozone’s economic resilience. The pound sterling also saw gains, with GBP/USD reaching 1.3550, supported by stronger-than-expected UK industrial production figures. Meanwhile, the Japanese yen appreciated, pushing USD/JPY down to 129.80. Emerging market currencies, such as the Brazilian real and South African rand, benefited from the shift in risk appetite, bolstered by reduced dollar demand. Traders are now closely watching next week’s Federal Reserve meeting for clarity on future monetary policy.
Forex Market: Dollar Weakens as Fed Pause Anticipated
