Market News

This week, all eyes will be on the US inflation data to gain further clarity into whether the inflation peaked, with many fearing a more severe recession on the horizon. The inflation data might influence the Federal Reserve’s decision on whether to act more aggressively.

To our clients, partners and traders, we wish you a happy and prosperous new year. Markets in the US, UK, Australia and New Zealand remained closed on Monday to mark the New year holiday.

The trading will also be thinned out this week and liquidity is expected to remain low as many are already on vacation mood. Therefore, trading during Holidays is risky as it is hard to predict the market due to less liquidity and wider spreads.

The Euro extends the rally further against the British pound and manages well to finally break above the key barrier at 0.8800 on Thursday amid GBP weakness.

Globally, the markets were cautious last week driven by hawkish comments from ECB and FED policymakers. The ECB and FED signalled that they would continue to raise rates to crush inflation. The main attraction for this week is Investors waiting for the US GDP and durable goods orders data, which could trigger volatility in the market.