Things to watch out for on Tuesday, January 17:
The US currency started the week where the previous one left off, easing across the currency board. Market participants remained encouraged by easing price pressures in the United States and the possibility that the US Federal Reserve gave early a turn to its monetary policy. Optimism, however, faded at the start of a quiet week, with US markets closed for the Martin L. King holiday. The dollar managed to recover before the daily close, but ended the day with modest gains against most of its main rivals, and is still at risk of falling.
The focus was on bonds of the Japanese State (JGB ), as the yield on the 10-year Treasury rose to 0.52%, sitting at the high end of the Bank of Japan’s range. The Bank of Japan is holding a monetary policy meeting this week, and rising yields fueled speculation that policymakers will finally make a change in their monetary policy. Governor Haruhiko Kuroda’s term ends next April, and speculative interest believes that he will introduce changes in the ultra lax policy before leaving. BOJ deputy head Masayoshi Amamiya is the leading candidate to be the next governor.
The Bank of Canada consumer survey showed 1-year ahead inflation expectations rose to a record 7.18% from 7.11% in the third quarter, while 2-year ahead inflation expectations fell to 5.14% from the 5.22% of the third quarter.
EUR/USD is hovering around 1.0815, while GBP/USD is trading a handful of points below 1.2200. The AUD/USD pair briefly topped 0.7000 but stabilized around 0.6950, while the USD/CAD pair oscillated around 1.3400. The USD/JPY pair has recovered from a fresh multi-month low of 127.21 and currently stands at 128.50.
Gold traded at $1,900, now consolidating at $1,914, while crude oil prices eased, and WTI settled at $79.12 a barrel.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
