CANADA CPI TO REMAIN FLAT, SUPPORTING BOC DOVISH OUTLOOK Canada’s CPI is expected to rise 1.8% YoY in January, similar to December’s level. The Bank of Canada cut interest rates by 25 basis points in January. The Canadian Dollar remains near yearly highs against the US Dollar.
USD/JPY is rising: The exchange rate is going up after dropping to a one-week low. US Dollar is stronger: The US Dollar is recovering, helping the USD/JPY pair. Trump's tariff delay helps: News that Trump may delay tariffs supports the market. BoJ rate hike concerns: Expectations
EUR/USD is low: The currency pair is trading near 1.0450 on Tuesday morning. US Dollar is stronger: Investors are buying the US Dollar because they feel the market is risky. US bond yields are rising: Higher US Treasury yields are supporting the Dollar. Key events ahead: Traders are
US-RUSSIA BEGIN PEACE TALKS ON UKRAINE Rubio to appoint teams to restore peace mission functionality in DC and Moscow. The meeting marks the first step in ending the Russia/Ukraine conflict. Solution must be acceptable to all parties, with EU involvement needed later. Waltz stresses the importance of a permanent
XI JINPING’S MEETING WITH TECH FIRMS BOOSTS CHINESE STOCKS The Hang Seng Index rose 1.18%, driven by a rally in Chinese tech stocks. Alibaba and Xiaomi gained over 4%, with Tencent and Meitu also seeing gains. Xi Jinping’s meeting with entrepreneurs, including Jack Ma, signaled stability and
RBA EXPECTED TO CUT INTEREST RATES AS ECONOMIC PRESSURE MOUNTS The Reserve Bank of Australia (RBA) is expected to cut the OCR by 25 basis points. Core inflation eased in Q4 2024 but stayed above the RBA’s target. The Australian Dollar consolidates gains ahead of the decision. The RBA
GOLD PRICE CAUTIOUS AHEAD OF US-RUSSIA TALKS Gold price stalls near $2,900, struggling to build on the rebound. US Dollar strengthens as market nervousness rises, with Treasury yields attempting a bounce. Gold could dip toward $2,950, but the bullish bias remains. Market watches closely for US-Russia bilateral talks
US OFFICIALS DISCUSS TARIFFS, TRADE, AND DEFENSE Bessent warns of substantial tariffs if other countries don’t reduce theirs. Bessent emphasizes Trump’s desire for frictionless trade and focuses on non-tariff barriers. Hegseth says Ukrainian borders remain uncertain. Hegseth advocates for more US troops in Poland.
GOLDMAN SACHS RAISES GOLD PRICE FORECAST TO $3,100/OUNCE Goldman Sachs increases its year-end gold price target to $3,100/oz, up from $3,000. The new forecast is over 6.5% higher than the current gold price. Central bank gold demand is expected to average 50 tonnes per
GBP/USD is falling close to 1.2600 before UK job data comes out on Tuesday. UK Prime Minister Starmer said a peace deal for Ukraine must have US support to stop future Russian attacks. US Fed official Michelle Bowman warned that inflation is still a risk, so rate cuts
AUSTRALIAN CONSUMER CONFIDENCE FALLS TO NEW LOW, RBA RATE CUT EXPECTED ANZ-Roy Morgan Australian Consumer Confidence index drops to 85.1, from 86.7. This marks a new low for 2025. Consumers are facing economic challenges, with the RBA rate cut possibly offering some relief. The RBA is expected to
Oil prices dropped for the fourth day in a row. A possible peace deal between Russia and Ukraine might reduce supply problems. If sanctions ease, more oil could be available. Trade wars could slow the economy. A weaker economy may lower energy demand.