Dollar recovers some poise on the day, some light profit-taking in precious metals
2026-01-29 10:36:00
The dollar started the day relatively poorly but is now bouncing back modestly in European morning trade. The greenback has pared declines across the board and is keeping near unchanged levels on the day now. EUR/USD traded to as high as 1.1996 earlier but is now back down to 1.1950 levels while AUD/USD is back down to 0.7047 after having been up as high as 0.7094 earlier in the day.
Besides that, USD/JPY is keeping back above the 153.00 mark to 153.30 with the pair having started the session near the figure level. And USD/CHF is also just off lows around 0.7650 to 0.7677 at the moment.
For the euro, the 1.2000 line is a crucial one to watch with ECB policymakers starting to step in with some verbal interjections on the currency. Meanwhile, yen-tervention risks remain heightened with Tokyo officials still waiting in the wings to step in and push back against any notable pressures on the currency. They were already not too happy about USD/JPY holding the line at the 100-day moving average on Tuesday and made sure to break that resolve shortly after. The key level is seen at 153.71 currently.
Despite the slight recovery here, the dollar is not quite out of the woods yet. As mentioned earlier today, the same drivers dragging down the dollar are still very much in play. And that will keep the dollar in a struggling spot barring a sharp correction in the precious metals space.
There is some light profit-taking there with gold backing down after a trip to test waters just above $5,600 earlier today. A second push in the early hours of Europe saw price come close again to test the big figure before some selling came about to send the precious metal down to a low of $5,473 in the past hour.
Gold (XAU/USD) 5-minute chart
It’s the same story for silver as well with price there easing to $116.96 after a brief run to clip above the $120 mark in touching a fresh record high of $120.47 – which came at the same time as gold’s second run up in the early hours of Europe.
