investingLive Americas FX news wrap: US equities shrug off Trump Fed independence attack

On January 12, 2023, the US equity markets set new records for the S&P 500 and Dow, shrugging off President Trump’s comments about the Federal Reserve. Led by technology and consumer staples, Walmart’s stock rose around 3%, lifting the Nasdaq. However, the financial sector struggled after Trump proposed a cap on credit card rates at 10%, which affected bank and consumer finance stocks significantly. In the FX market, the dollar weakened in Asia and traded sideways in the US amidst concerns over Fed independence. The dollar index fell, even as the euro neared $1.17 before decreasing. Notably, USD/JPY remained supported around 158.1, pressured by recent Japanese wage data and a narrative suggesting the Bank of Japan’s tightening path might be delayed. By the time of the update, USD/JPY had dipped below 158.00, with macro focus shifting to the upcoming US CPI release. In commodities, gold surged above $4,600/oz, reaching record highs as investors sought classic havens amid political and geopolitical uncertainty.