Market Overview - Page 34

The Federal Reserve left its key rate unchanged in the 4.25%-4.50% range at the end of its January meeting after three consecutive 100 basis point cuts. The markets expected this decision, so their attention was focused on signalling the prospects.

The German Consumer Climate Index declined, reflecting negative trends in income expectations and the desire to buy, which can be attributed to rising inflation.

News of potential tariffs on imported goods has sparked speculative interest in the US dollar, leading to a rise in its value. However, there is uncertainty regarding the implementation of these tariffs and how they will affect the economy.

The decline in US and European indices was caused by investors exiting AI-related stocks after the release of China's high-quality DeepSeek-R1 AI model. Nvidia shares lost over 10%, putting pressure on the market and potentially leading to a 5-10% reduction in market capitalisation.

The new week will be packed with monetary policy news. Most observers expect the Bank of Canada to cut its key rate by 25 points to 3.0% on Wednesday, 29 January. The previous two cuts have been 50 pips each,.

The price of gold is rising for the fourth week, having added over 3% in the last five days. With the price of an ounce around $2780, the price has reached the area of historical highs at $2790. The dynamics.

The US dollar weakened against major currencies due to expectations of a rate cut by the Fed. US indices reached new highs, but concerns remain about the upcoming Fed meeting.

This week, we’re breaking down the big moves in the markets: the US dollar’s drop, gold pushing toward record highs, and Bitcoin smashing new milestones. Plus, with the Fed and ECB meetings on the horizon, there’s a lot to keep.

Despite positive labour market figures in the UK, the pound has declined following a previous surge. The former strong support level for GBPUSD has acted as resistance and there is a possibility of a bearish sentiment.

Despite fear driving stock markets recently, the sentiment index suggests further upside potential for stocks. Stronger stocks could lead to broader market gains.

US markets will be closed on Monday for Martin Luther King Day, affecting trading hours. Trump's inauguration may influence FX and global stocks. On Tuesday, the CAD may be influenced by CPI data. On Friday worth noting BoJ rate decision and EU PMI Flash releases.

The US dollar initially rose but came under pressure throughout the week. Chances that Fed will not cut rate this year has decreased. US indices experienced a correction but have since grown due to softer inflation figures.