Forex Today: Dollar consolidates Friday gains as investors await a fresh catalyst

What you need to know on Tuesday, January 18:

The week started in slow motion, with little action across the FX board. Chinese data released at the beginning of the day provided a modest boost to high-yielding assets, which changed course during European trading hours. US markets were closed due to the celebration of Martin Luther King Day, with no action in stocks and bonds.

The EUR/USD pair trades a handful of pips above the 1.1400 threshold, while GBP/USD hovers around 1.3650. The USD/JPY pair managed to post a modest intraday advance and settled around 114.60 helped by the positive tone of Asian and European equities.

The AUD/USD pair is unchanged at around 0.7210, while USD/CAD eased to 1.2520. Commodities remained within familiar levels, with gold trading at $1,818 a troy ounce and WTI consolidating at $83.70 a barrel.

Market players are still looking for yields, reflecting inflation-related concerns, and equities for directional clues. Later in the week, the EU will publish the final reading of December inflation figures. The European Central Bank still maintains a wait-and-see stance regarding inflation, hoping prices pressures will recede without their intervention, and currently maintaining the ultra-loose financial support.

Shiba Inu price primed for 50% breakout to kick start new bull run