In The News Today! 🌏

– Market Conditions and what to look out for this week 🗓️

EUR/USD is trading below 1.0850 in Asian trading on Monday. The pair's downbeat tone is supported by further US Dollar demand amid rising geopolitical tension in the Middle East. Investors will be watching these developments closely prior to a busy end of the week.

Gold price snaps the two-week losing streak, trading near $2,025 USD during the early Asian session on Monday. The escalating tension in the Middle East has boosted safe-haven demand. Traders will closely monitor the FOMC meeting on Thursday morning.

The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.

• CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.

• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

• The previous close was 7.1785

What happened last week …

The EUR/USD pair has dropped below the 1.0900 level due to a shift in market sentiment favouring the US Dollar. Some investors are withdrawing bets on the United States cutting interest rates in March, contributing to this movement.

Meanwhile, the AUD/USD pair is stabilising around 0.6600 in the early Asian session on Monday. It is benefiting from a positive risk sentiment in global markets. However, there is a potential for the US Dollar to gain strength amid rising geopolitical tensions in the Middle East, which could limit the upside for the Aussie.

Looking ahead, considering the less-than-robust growth outlook and declining inflation, investors anticipate that many central banks worldwide will start cutting interest rates in 2024. In advanced economies, most G10 central banks are expected to begin rate cuts in Q2-2024, but there is a possibility of earlier easing if inflation trends lower towards targets.

Things to look out for this week;

• Tuesday 30th January

  🇺🇸 CB Consumer Confidence - USD

  🇺🇸 JOLTS Job Openings - USD

• Wednesday 31st January

  🇦🇺 CPI q/q - AUD

  🇦🇺 CPI y/y - AUD

  🇦🇺 Trimmed Mean CPI q/q - AUD

  🇨🇳 Manufacturing PMI - CNY

  🇩🇪 German Prelim CPI m/m - EUR

  🇺🇸 ADP Non-Farm Employment Change - USD

  🇨🇦 GDP m/m - CAD

  🇺🇸 Employment Cost Index q/q - USD

• Thursday 1st February

  🇺🇸 Federal Funds Rate - USD

  🇺🇸 FOMC Statement - USD

  🇺🇸 FOMC Press Conference - USD

  🇬🇧 BOE Monetary Policy Report - GBP

  🇬🇧 Monetary Policy Summary - GBP

  🇬🇧 MPC Official Bank Rate Votes - GBP

  🇬🇧 Official Bank Rate - GBP

  🇺🇸 Unemployment Claims - USD

  🇺🇸 ISM Manufacturing PMI - USD

• Friday 2nd February  

  🇺🇸 Average Hourly Earnings m/m - USD

  🇺🇸 Non-Farm Employment Change - USD

  🇺🇸 Unemployment Rate - USD

  🇺🇸 Revised UoM Consumer Sentiment - USD

At the time of writing, this reflects the mid-market rate, though it is subject to change;

AUD-USD 🇺🇸

Rates have had little movement on last week, sitting at  0.6587.

(3:00PM AEDT)

AUD-GBP 🇬🇧

Dropping to 0.5187 the AUD - GBP is sitting at a similar rate to last week.

(3:00PM AEDT)

AUD-NZD 🇳🇿

AUD to NZD has had a slight rise in base level compared to the last 2 weeks of January 1.0801.

(3:00PM AEDT)

AUD-EUR 🇪🇺

AUD to the EUR has slight rise over the last week to the rate of 0.6075.

(3:00PM AEDT)

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