Collinson Forex Daily Market Commentary and Weekly Market Calendar

Monday, January 20, 2025


Daily Market Commentary
Markets rallied across Europe and the US to close out a week of gains, ahead of the 'much anticipated' Trump inauguration, scheduled for Monday 20th January. This is also a holiday in the USA, celebrating MLK Day, meaning markets will not register the festivities and announcements until Tuesday trading, a long weekend in effect. Market fears over the impact of tariffs on trade, will be closely watched, and a deluge of Executive Orders are expected Monday. The US Dollar has been softer, of late, as have US Bond Yields, coming of recent highs. This has allowed the EUR to recover back towards 1.0300, but damaging economic data from the UK, has pushed the GBP below 1.2200.
 
The weaker reserve has allowed the commodity currencies to stabilise, with the AUD regaining 0.6200, while the NZD struggles to reach 0.5600. It will be a big week for the NZD, with the latest inflation reading expected to be benign, while the last GDP number confirmed the NZ economy is in recession. The heat is on the RBNZ to make a big rate cut in February, in order to stimulate the economy, but this will potentially undermine the KIWI

Weekly Market Calendar

20/1 Inauguration Day USA, MLK Holiday, WEF Davos, UK House Prices, PBoC IRD, Japan Industrial Production, German PPI, NZ Business PSI
 
21/1 WEF Davos, EU Meeting, EU/German ZEW Economic Sentiment, Canada CPI, NZ CPI
 
22/1 US Weekly Mortgage Applications, Japan Trade Exports/Imports
 
23/1 US Weekly Jobless Claims, EU Consumer Confidence, Kansas City Fed Manufacturing Index, Australia Services/Manufacturing/Composite PMI, Japan CPI
 
24/1 Japan Services/Manufacturing/Composite PMI, NZ Credit Card Spending, Bank of Japan IRD, UK/France/German/EU Services/Manufacturing/Composite PMI, US Services/Manufacturing/Composite PMI, US Existing Home Sales, University of Michigan Economic Sentiment

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