The last week of January will bring in tow a flow of US statistics, more sessions of Central banks, and a meeting of the US Fed. Things will be, at least, curious.
USD: attention to the Fed
The first session of the Fed this year must go smoothly and without surprises. The interest rate will be remaining in the target range of 0-0.25% for quite a long time, while the comments are likely to be carefully optimistic about the planned stimulation. For the USD, these factors are neutral, but the dollar might decline a bit for short whiles.
Central banks: sessions are keeping on
This week, apart from the US Fed, the Banks of Nigeria, Hungary, Kenia, Mozambique, and Kazakhstan are planning their sessions. In all the cases, the credit and monetary policy is going to remain the same, which is a signal of certain economic stabilization for capital markets.
US corporations will report their performance
The last week of January will provide us with the financial reports of Apple, Tesla, Facebook, and other large entities from the US. The stabler the digits, the better for capital markets and risky assets; however, risks connected to low consumer demand might be still there.
GBP: the pound is hoping for the best
After the vaccination started, the market's attitude towards the pound remains positive. This week, statistics will be abundant, including the labor market and retail sales data. The fewer the signals of slowing down, the better for the GBP.
JPY: the demand for safe-haven assets is limited
Capital markets are sure that the world will escape the tight grip of the pandemics quite soon, so the demand for protective assets, including the yen, is limited. This week, Japan will publish the statistics on the CCI, unemployment rate, and base inflation in Tokyo, and if the digits are moderate, the JPY will hardly react.