ForexLive European FX information wrap: Greenback eases forward of Trump inauguration

Headlines:

• Reminder: US markets might be closed at this time
• Weekly replace on rate of interest expectations
• Bitcoin at contemporary document highs as Trump meme coin sparks shopping for fever
• ECB’s Holzmann: A price lower isn’t a foregone conclusion for me in any respect
• China reportedly set to advertise Zou Lan to PBOC deputy governor
• Germany December PPI -Zero.1% vs +Zero.2% m/m anticipated
• Switzerland December producer and import costs Zero.Zero% vs -Zero.6% m/m prior
• SNB complete sight deposits w.e. 17 January CHF 445.three bn vs CHF 445.1 bn prior

Markets:

• EUR leads, JPY lags on the day
• European equities little modified; S&P 500 futures down Zero.1%
• Gold up Zero.2% to $2,707.06
• WTI crude flat at $77.33
• Bitcoin up 5.three% to $106,527

It was a quiet session however understandably so with US markets closed for the lengthy weekend.

That mentioned, the greenback is down on the day after some “optimistic talks” between Trump and Xi over the weekend. That probably might pave the way in which for softer tariffs and that’s what’s weighing on the greenback. China vp, Han Zheng, is ready to attend Trump’s inauguration in an indication of hope to start out the brand new presidency.

EUR/USD is up round Zero.four% to 1.0315 and held round 1.0300 to 1.0320 principally, with massive choice expiries retaining the pair afloat above the determine degree. In the meantime, GBP/USD is up Zero.2% to 1.2190 whereas AUD/USD is up Zero.2% to Zero.6200 on the day.

All eyes are on Trump’s inauguration subsequent to see what he’ll announce as he takes cost of the White Home once more.

In different markets, Bitcoin is up as Trump additionally stirred up some crypto fever by launching his personal meme coin. $TRUMP reached a market cap excessive of $14 billion earlier than falling again to simply underneath $11 billion at present. Nonetheless, it launched Bitcoin to a contemporary document excessive simply above $109,000 earlier than easing again somewhat beneath the December excessive.

This text was written by Justin Low at www.ubaidahsan.com.



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