\u201cOverall in the coming week we highlight the release of final US GDP rate for Q3 25 and the PCE rates for November as possible market movers for the USD. A possible acceleration of the rates could provide some support for the USD as it could enhance the Fed\u2019s intentions to keep rates unchanged for longer. \u201d<\/em><\/p>\n\n\n\n The pound remained relatively unchanged against the USD and the EUR yet seems to be gaining a bit against the JPY. We note that the beyond-expectations acceleration of the GDP rate for November, brightened the outlook of the UK on a macroeconomic level. In the coming week, we note the release of the UK employment data for November on Tuesday and we highlight the release of UK CPI rates for December on Wednesday. Should the data show a tightening UK employment market and the CPI rates accelerate implying an intensification of inflationary pressures in the UK economy, we may see the sterling getting some support as it would add more pressure on the BoE to keep rates unchanged for longer. On a monetary level, we note that Bank of England Monetary Policy Committee member Alan Taylor stated that rates are likely to continue to fall as inflation is likely to settle around the central bank\u2019s 2 per cent target soon. The comment could be considered as dovish and more comments of the same tone from BoE policymakers, could weigh on the pound. For the time being we note that GBP OIS imply that the market expects the bank to cut rates twice in the coming year. Also we note the market worries for the BoE lowering UK banks\u2019 capital requirements too much. The issue could increase risks for UK banks as these capital requirements acted as buffers for potential losses.<\/p>\n\n\n\n Analyst\u2019s opinion (GBP)<\/p>\n\n\n\n \u201cIn the coming week, we highlight the release of UK\u2019s employment data and CPI rates as possible market movers for the GBP. Should the rates show a tighter UK employment market and a persistence of inflation we may see the pound getting some support.\u201d<\/em><\/p>\n\n\n\n JPY seems to be on the losing side for the current week in the FX market as it loses ground against the USD, GBP and the EUR, implying a wider weakness. We note on a fundamental level the intentions of Japanese PM Takaichi to call a snap election, possibly on the 8th of February, by dissolving the Lower House of the Diet. Japan\u2019s PM may be hoping that snap elections could widen the majority of her party and thus solidify the grasp on power. The issue is highly controversial and tends to weigh on the JPY. Announcements are expected to be made on Monday and could shake the JPY. Also we highlight the risk of a possible market intervention and the recent comments of Japan\u2019s Finance minister Satsuki Katayama for a possible joint US- Japanese market intervention to the JPY\u2019s rescue, were indicative of such a scenario materialising. On a monetary level we highlight the release of BoJ\u2019s interest rate decision on Friday\u2019s Asian session. Currently the market expects the bank to remain on hold, which is also our base scenario for now. Characteristically JPY OIS almost fully prices in such a scenario to materialise. Hence we expect market attention to be placed on the release of BoJ\u2019s accompanying statement and BoJ Governor Ueda\u2019s following press conference. Should the BoJ opt to maintain a hawkish tone, reiterating of implying its intentions to hike rates again in the current year, we may see JPY getting some support. On a macroeconomic level in the coming week we note the release of Japan\u2019s CPI rates for December next Friday and a possible acceleration of the rates could provide some support for the JPY, yet the release of BoJ\u2019s interest rate decision later the same day could overshadow the release of Japanese inflation metrics.<\/p>\n\n\n\n Analyst\u2019s opinion (JPY)<\/em><\/p>\n\n\n\n \u201c<\/em>On a fundamental level, we note Japan PM Takaichi\u2019s intentions to call for a snap elections which tends to weigh on the JPY, On a monetary level, we highlight the release of BoJ\u2019s interest rate decision next Friday and a possibly hawkish tone could provide some support for JPY. Also we note that JPY is at very low levels against the USD, which may prompt a possible market intervention by Japan\u2019s for the rescue of its currency.\u201d<\/em><\/p>\n\n\n\n The common currency seems to remain rather stable for the week against the USD, GBP and JPY. On a monetary basis, we note the support the EUR gets by the market\u2019s expectations for the bank to remain on hold throughout the year, as per EUR OIS, in contrast to the Fed and BoE which are expected to cut rates to some degree or the other in 2026. As a sidenote, please bear in mind that ECB Vice President De Guindos warned about the possible negative consequences on growth by geopolitical issues. On a macroeconomic level, we note the verification of the slow down of Euro Zone\u2019s HICP rate for December to the ECB\u2019s target of 2%yy. In the coming week we get a number of interesting macroeconomic data like Germanys\u2019 ZEW indicators for January but our eye is fixed on the release of January\u2019s preliminary PMI figure for France, Germany and the Euro Zone as a whole. Market worries seem to revolve around Germany\u2019s manufacturing sector, thus the reading for the particular sector may be closely watched. Currently growth of the economy may be the main issue for the Europeans and should the release show improved economic activity, we may see the EUR getting some support.<\/p>\n\n\n\n Analyst\u2019s opinion (EUR)<\/em><\/p>\n\n\n\n \u201cIn the coming week, we highlight the release of Euro Zone\u2019s preliminary PMI figures for January and should the release show improvement of economic activity we may see the common currency getting some support.\u201d<\/em><\/p>\n\n\n\n Also the Aussie tended to remain relatively unchanged for the week against the USD. On a fundamental level, note that the risk off sentiment in the markets tends to keep the Aussie under pressure and we tend to highlight the market sentiment as maybe the main issue for Aussie traders on a fundamental level. Yet Aussie traders are always keeping China also in their peripheral vision given the close Sino Australian economic ties. China\u2019s December trade data revealed that the imports growth rate accelerated beyond market expectations, which tends to bode well with Aussie traders. Also the acceleration of China\u2019s industrial output for the same month is a positive signal for Australian exports and subsequently for the Aussie as such. In the coming week, we note the release of China\u2019s GDP rate for Q4 and a possible acceleration could aid AUD and the vice versa. On a macroeconomic level, it has been a quiet week for Aussie traders, yet in the coming week, we highlight the release of Australia\u2019s December employment data. Should the data show a tightening of the Australian employment market we may see the Aussie getting some support as the market\u2019s expectations for RBA to continue tightening its monetary policy may intensify. Please bear in mind that currently AUD OIS imply that the market expects the bank to proceed with a rate hike in the May meeting and then remain on hold for the rest of the year, with such expectations providing moderate support for the AUD of a monetary level.<\/p>\n\n\n\n Analyst\u2019s opinion (AUD)<\/em><\/p>\n\n\n\n \u201cThe main market mover for Aussie traders in the coming week may prove to be the release of Australia\u2019s employment market and data pointing towards a possibly tighter than expected Australian employment market may provide some support for AUD. Also the cautious market sentiment seems to keep the Aussie under pressure as AUD is considered a risky asset in the FX market.\u201d<\/em><\/p>\n\n\n\n The Loonie is about to end the week relatively steady against the USD. On a monetary level, BoC is currently expected to remain on hold until the end of the year, which tends to be supportive for the Loonie on a monetary level. On a fundamental level, we note the perception of a positive correlation between the CAD and oil prices, given Canada\u2019s status as a major oil producer. The reversal of Venezuela\u2019s oil production cuts tends to place pressure on the CAD as Venezuelan oil could prove to be antagonistic for Canadian oil. On the other hand, the rise of oil prices seems to have been halted through a drastic drop yesterday, possibly weighing somewhat on the CAD. Also, on a fundamental level, we note that Canadian PM Carney is on tour in China trying to improve Sino-Canadian trade relationships, which could provide some support for the Loonie if materialized. On a macroeconomic level, the contraction of the building permits, wholesale trade and manufacturing sales growth rates tends to weigh on the CAD somewhat. In the coming week, we highlight the release of Canada\u2019s December CPI rates on Monday and a possible acceleration of the rates could enhance the market\u2019s expectations for the BoC to remain on hold, thus providing support for the Loonie. We also note the release of the PPI rates for the same month on Wednesday and a possible acceleration could also act bullishly for the Loonie.<\/p>\n\n\n\n Analyst\u2019s opinion (CAD)<\/em><\/p>\n\n\n\n \u201cIn the coming week we highlight the release of Canada\u2019s CPI rates as possibly the main event of the week. A possible acceleration of the rates could enhance the market\u2019s expectations for the BoC to remain on hold, thus providing support for the Loonie.\u201d<\/em><\/p>\n\n\n\n In the FX market all being equal, we expect the USD relent some of the initiative to other currencies, and density and gravity of US financial releases tends to ease somewhat. Allowing other currencies to get under the spotlight in the coming week may form a more balanced mix for traders. Indexes related to US stockmarkets tend to remain stable over the week but at record high levels. US President Trump\u2019s intentions to cap interest rates at 10% on credit cards, tended to weigh on US stock markets somewhat. Also we note the start of the earnings season, and large US banks reported healthy rates and figures, often surpassing market expectations in the past few days. In the coming week, notable earnings releases could be on Tuesday, Netflix and 3M, on Wednesday J&J and on Thursday Visa, Louis Vuitton, P&G and Intel. Should the earnings releases show improved and possibly better than expected figures, could provide a more risk on market sentiment with wider repercussions. As for precious metal\u2019s we note that gold has reached new record high levels as did silver\u2019s price, with the latter rising with substantially more intensity with the bullish outlook currently remaining intact for both.<\/p>\n\n\n\n![\"\"](\"\/wp-content\/uploads\/2026\/01\/image-69.png\")
<\/figure>\n\n\n\nGBP \u2013 Employment data and CPI rates to move the sterling<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2026\/01\/image-70.png\")
<\/figure>\n\n\n\nJPY \u2013 BOJ interest rate decision in the epicenter<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2026\/01\/image-71.png\")
<\/figure>\n\n\n\nEUR \u2013 January preliminary PMI figures in focus<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2026\/01\/image-72.png\")
<\/figure>\n\n\n\nAUD \u2013 Aussie traders to concentrate on December\u2019s Employment data<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2026\/01\/image-73.png\")
<\/figure>\n\n\n\nCAD \u2013Canada\u2019s December inflation data could shake the Loonie<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2026\/01\/image-74.png\")
<\/figure>\n\n\n\nGeneral Comment<\/h2>\n\n\n\n