22/01/2026 - 07:48 UTCThe US Dollar Index (USDX) rose 0.23% on Wednesday holding steady near the 99.00 threshold as market participants adopted a cautious stance ahead of critical economic data releases. Investors are closely monitoring upcoming reports on annualized Gross Domestic Product (GDP), weekly jobless claims, and the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge. While the USDX has maintained its footing following these modest gains, the broader outlook remains tied to whether these indicators will provide clear evidence of inflation moving sustainably toward the Fed's 2% target, especially as markets continue to price in potential rate cuts later this year.
Support for the Greenback has also been supported by a notable easing of geopolitical tensions between the United States and Europe. In a recent shift at the World Economic Forum in Davos, President Trump walked back threats of a 10% tariff on several European nations, citing a new "framework" established with NATO regarding the future of Greenland and Arctic security. Although the specific parameters of this agreement remain undisclosed, the move has temporarily sidelined fears of a renewed transatlantic trade war. As the Federal Reserve maintains a "wait-and-see" approach, the dollar's trajectory in the coming days will likely be dictated by whether the domestic data supports the market's expectation for policy easing.
Most Asian markets climbed on Thursday as investors responded to positive signals from Wall Street and easing geopolitical tensions. The regional rally was largely fueled by a surge in artificial intelligence and semiconductor stocks following optimistic commentary from NVIDIA CEO Jensen Huang regarding the scale of global AI infrastructure. At 07:15 AM GMT on Thursday, January 22, 2026, the major regional indices showed mixed but generally positive movements. The Shanghai Composite rose 0.13% and the Shenzhen Component added 0.52%, while Japan’s Nikkei 225 stayed nearly flat with a 0.04% gain. In contrast, the Hang Seng index in Hong Kong slipped 0.37%.
The technology sector remained the primary driver of market sentiment, with key Japanese tech giants seeing explosive growth. Advantest Corp., a leader in semiconductor testing, soared 5.79% due to heightened demand for AI-specific hardware. Meanwhile, SoftBank Group Corp. jumped 12.03%, fueled by its significant exposure to the AI ecosystem and a broader market recovery. In South Korea, the KOSPI hit a record high led by heavyweights Samsung and SK Hynix, as investors focused on robotics and physical AI capabilities.
Wall Street sentiment is currently buoyed by strong corporate performance, as recent reports confirm that U.S. business health remains robust despite broader economic pressures. Investors are looking ahead to a heavy slate of reports on Thursday from industry leaders such as Procter & Gamble, Intel, and Abbott Laboratories. These upcoming disclosures are expected to provide further evidence of whether the resilience seen in the past week’s earnings can be sustained across diverse sectors of the economy.
The focus shifts even more intensely toward the technology sector next week, with Microsoft, Meta, and Tesla scheduled to report. Wall Street analysts are particularly interested in the "AI hyperscalers" to determine if their massive capital expenditures on data center infrastructure are beginning to generate significant financial returns. These results will be pivotal in justifying current valuations and will likely overshadow other macroeconomic factors, such as the Federal Reserve's upcoming interest rate decision, as investors look for concrete proof of AI-driven growth.
The EUR/USD pair declined more than 0.40% on Wednesday as easing trade tensions between the US and Europe improved risk sentiment and lifted the US Dollar.
The euro came under pressure during the North American session after US President Donald Trump abandoned previously signaled tariff plans targeting several European countries. The shift followed discussions related to Greenland and broader Arctic cooperation, which reduced near-term trade uncertainty and supported the Greenback. Speaking from Davos, Switzerland, President Trump said via Truth Social that talks with NATO Secretary General Mark Rutte had resulted in a preliminary framework covering Greenland and the wider Arctic region. Based on this understanding, Trump confirmed that tariffs scheduled to take effect on February 1 would no longer be implemented.
In Europe, the focus remained on commentary from European Central Bank officials, including President Christine Lagarde and Governing Council member Robert Holzmann Kocher. Lagarde reiterated that monetary policy is currently “in a good place,” while warning that trade-related uncertainty continues to weigh on the Eurozone economy.
Looking ahead, markets will turn to a busy US economic calendar on Thursday, featuring the final reading of third-quarter 2025 GDP, weekly jobless claims, and the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge. In the Eurozone, attention will center on the ECB’s Monetary Policy Meeting Accounts and updated consumer confidence figures.
Bitcoin edged higher on Thursday but failed to reclaim the $90,000 level, as signs of easing geopolitical tensions offered only limited support to cryptocurrency markets.
The world’s largest digital asset underperformed a broader rally in global equities, particularly in technology stocks, which typically move in tandem with crypto prices but posted much stronger gains during the session.
Bitcoin saw a short-lived rally on Wednesday after US President Donald Trump said he would refrain from imposing tariffs on Europe following progress toward a framework agreement related to Greenland. The comments boosted risk sentiment across markets and briefly lifted crypto prices.
However, Bitcoin was unable to sustain those gains, slipping back below the $90,000 mark even as risk-sensitive assets continued to advance and traditional safe havens such as gold retreated.
Market participants remain cautious toward cryptocurrencies, particularly after a sharp selloff late in 2025 weighed heavily on investor confidence. Retail participation has remained subdued, contributing to weaker price momentum relative to other risk assets.
Adding to the cautious outlook, delays in advancing a key US cryptocurrency regulatory bill earlier this month further dampened investor confidence in the sector.
Broader cryptocurrency markets posted modest advances early on Thursday, though early gains were partially erased. Many major altcoins remain under pressure after recent weeks of losses.
Oil prices traded in a narrow range during Asian hours on Thursday as easing geopolitical tensions offset concerns over rising US crude inventories and mixed supply signals.
Both benchmarks have posted modest gains over the past two sessions, underpinned by supply disruptions after OPEC+ member Kazakhstan temporarily halted production at the Tengiz and Korolev oilfields earlier this week.
Market sentiment improved after US President Donald Trump dialed back earlier threats to impose tariffs on European nations in connection with negotiations over Greenland. Trump said on Wednesday that a framework agreement was taking shape and ruled out the use of force, easing concerns over a potential escalation in US–EU trade tensions.
On the supply front, data from the American Petroleum Institute showed US crude inventories increased by 3.04 million barrels in the week ended January 16, following a surge of more than 5 million barrels the previous week.
Gasoline inventories rose sharply by 6.21 million barrels, pointing to weaker end-user demand, while distillate stocks—including diesel and heating oil—declined slightly by 33,000 barrels.
On the demand side, prices found some support after the International Energy Agency raised its forecast for global oil demand growth in 2026. Despite the upward revision, the agency continues to expect the oil market to remain in a significant surplus through 2026, limiting the scope for sustained price gains.
US equities closed sharply higher on Wednesday after President Donald Trump said he would not impose new tariffs on European countries, easing trade concerns and lifting investor sentiment.
The rally followed comments from Trump at the World Economic Forum in Davos, Switzerland, where he announced progress toward a framework agreement covering Greenland after discussions with NATO Secretary General Mark Rutte.
In corporate news, Netflix shares fell after the streaming company reported quarterly earnings that topped expectations but issued weaker-than-anticipated guidance for the first quarter. The company cited declining viewership of non-branded licensed content, signaling softer demand outside its flagship original programming.
The earnings release followed reports that Netflix had increased its $72 billion bid for Warner Bros. Discovery’s studios and streaming assets, seeking to strengthen its position in a competitive bidding process involving Paramount Skydance.
United Airlines shares moved higher after the carrier exceeded profit expectations and delivered an upbeat outlook for both the current quarter and the full year, supported by strong demand from higher-income and corporate travelers.
Johnson & Johnson shares also fell, despite the company forecasting 2026 sales and earnings above consensus estimates. The pharmaceutical giant warned that a recently negotiated drug pricing agreement with the US government could reduce profits by several hundred million dollars.
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