The monthly order book balance rose to -30 in January, which marks a slight improvement from the -32 estimate in December. That’s the best reading since September but it still points to extended weakness in the industrial sector. For some context, the index remains well below its long-run average of -14.

The only bright side is that business optimism is seen improving to -19 from -31 previously. But on the prices side, there is more discouraging news for the BOE. The survey’s gauge of expected prices jumped to 29 (previously 19), which is the highest since February 2023. And that was when the UK got a price shock amid the Russia-Ukraine conflict, so this is something to be mindful of as price pressures remain a concern.

CBI notes that existing conditions for manufacturers are “extremely tough”. Adding that:

“At the same time, cost pressures – from rising wages, high energy prices and taxes – are squeezing margins and weighing on competitiveness, pushing firms to plan price rises even as demand remains subdued.”

This article was written by Justin Low at investinglive.com.

The waiting game continues as the US Supreme Court released two decisions today but neither were on tariffs. This means it could be until at least Feb 20 before we get a decision.

For the legal fans out there, here is an LLM-generated review of the two decisions today.

Berk v. Choy

The Court held that Delaware’s requirement for an “affidavit of merit” in medical malpractice suits does not apply in federal court. Petitioner Harold Berk’s suit had been dismissed for failing to provide an expert’s attestation of the claim’s validity as required by state law. Writing for the majority, Justice Barrett concluded that Federal Rule of Civil Procedure 8 governs the information required at the outset of litigation, and because it only requires a “short and plain statement of the claim,” it displaces contrary state evidentiary hurdles.

Ellingburg v. United States

The Court unanimously ruled that restitution under the Mandatory Victims Restitution Act (MVRA) is criminal punishment. Holsey Ellingburg challenged the retroactive application of the MVRA to his pre-enactment crime as a violation of the Ex Post Facto Clause. Justice Kavanaugh noted the MVRA’s text, which labels restitution a “penalty” and integrates it into criminal sentencing, makes its punitive nature “abundantly clear”. This classification ensures that restitution is subject to constitutional protections against retroactive punishment.

There are no scheduled decision days, though they can be announced with 1-3 days notice. Tomorrow the Supreme Court will hear arguments on Trump vs Cook, the case about firing Fed Governor Lisa Cook. Fed Chairman Jerome Powell said he will be in attendance but it will likely be months before that case is decided.

The tariffs case is not expected to take long with a decision in January or February. However the calendar is now working against it with the court preparing for a four-week recess at the end of this week. That would push the earliest possible decision date to Feb 20 if one isn’t quickly announced for this week

This article was written by Adam Button at investinglive.com.

Markets are waiting with bated breath for his special address at the World Economic Forum (WEF) in Davos later today. He was supposed to have arrived already for the event but encountered a delay after Air Force One had a “minor electrical issue”. From earlier:

• Air Force One has had to return to the US soon after leaving due to a fault
• Trump back en route to Davos after “minor electrical issue” with Air Force One

His scheduled address is to take place later at 1330 GMT. So, that’s the main thing on the agenda for markets today.

Given the backdrop and commentary from US officials before this, it seems like they will want to draw a hard line and try to ridicule European leaders on their home turf. And knowing Trump, it wouldn’t be surprising to see him attempt that in his opening speech when he arrives before sitting down to talk on the sidelines.

It still isn’t clear if he will be meeting with European leaders tomorrow after his evil cabal ‘Board of Peace’ gathering.

For now, markets are keeping calmer so far today after the negative cleansing yesterday. S&P 500 futures are up 0.3% but it belies the more nervous and anxious mood as we await Trump’s appearance.

In the major currencies space, the dollar is also keeping steadier with light changes across the board. But in the commodities space, precious metals continue to shine as traders and investors continue to seek safety amid all the chaos that is happening. Gold is up over 2% to $4,864 with silver up 0.6% to $95.07 currently.

This article was written by Justin Low at investinglive.com.

The post Ex-Dividend 22/01/2026 first appeared on IC Markets | Official Blog.

IC Markets Global – Europe Fundamental Forecast | 21 January 2026

What happened in the Asia session?

Markets extend declines amid ongoing fallout from President Trump’s escalated rhetoric on Greenland acquisition and tariff threats against Europe, compounded by recent weak Chinese Q4 GDP data at 4.5% and rising Japanese government bond yields to multi-decade highs. No major new macroeconomic data releases occurred today, but anticipation built around Trump’s upcoming speech at Davos and broader geopolitical tensions weighing on sentiment. 

What does it mean for the Europe & US sessions?
Pre-market earnings reports from key companies, including Johnson & Johnson (JNJ), TE Connectivity (TEL), Truist Financial (TFC), Ally Financial (ALLY), and others, may drive sector volatility in U.S. and European sessions today. Gold prices have surged over 2% to around $4,755 per ounce amid heightened political risks from U.S. tariff threats on European nations and expectations of Federal Reserve rate cuts by mid-2026, bolstering its safe-haven appeal.

​

The Dollar Index (DXY)

Key news events today

President Trump Speaks (1:30 pm GMT)

Pending Home Sales m/m (3:00 pm GMT)

What can we expect from DXY today?

The US dollar remains under strain, drifting lower in line with forecasts as the Fed’s easing bias persists post-2025 rate cuts, inflation lingers near 2.7%, and job growth slows, narrowing yield advantages against the ECB (2.00%) and BoE (3.75%). Short-term bounces lack conviction amid light trading volumes, trade tensions, and upcoming data like UK CPI today and PMIs later this week.

Central Bank Notes:

• The Federal Open Market Committee (FOMC) is widely expected to lower the federal funds rate target range by 25 basis points to 3.50%–3.75% at its December 9–10, 2025, meeting, marking the third consecutive cut after the October reduction to 3.75%–4.00%
• The Committee continues to pursue maximum employment and 2% inflation goals, with the labour market showing further softening as the unemployment rate rose to 4.4% in September 2025 amid modest job gains.
• Officials note persistent downside risks to growth alongside resilient activity, with inflation easing to 3.0% year-over-year CPI in September but remaining elevated due to tariff effects; core PCE stands at around 2.8% as of October.
• Economic activity grew at a 3.8% annualised pace in Q2 2025, according to revised estimates. However, Q3 and Q4 are expected to face headwinds from trade tensions, fiscal restraint, and data disruptions, such as the government shutdown.
• September’s Summary of Economic Projections forecasts 2025 unemployment at a median of 4.5%, with PCE inflation near 3.0% and core PCE at 3.1%, signalling a gradual disinflation path. Updates expected on December 10 may adjust for higher unemployment and lower growth.
• The Committee maintained its data-dependent approach, noting a softening labour market and inflation above the 2% target, while deciding to lower the federal funds rate target range by 25 basis points to 3.50%-3.75%. Dissent persisted, with multiple members opposing the cut or advocating for a hold, reflecting divisions similar to recent meetings.​
• The FOMC confirmed the conclusion of its quantitative tightening program effective December 1, 2025, with Treasury rolloff caps at $5 billion per month and agency MBS caps at $35 billion per month to ensure ample reserves and market stability.
• The next meeting is scheduled for  27 to 28 January 2026.

Next 24 Hours Bias
Medium Bearish

Gold (XAU)

Key news events today

President Trump Speaks (1:30 pm GMT)

Pending Home Sales m/m (3:00 pm GMT)

What can we expect from Gold today?

Spot gold hit records near $4,760 before minor pullbacks, with forecasts for January 21 suggesting a range of $4,576-$4,762, influenced by upcoming US President Trump’s speech and GDP data. Technicals show weakening bullish momentum but strong support above $4,500, with resistance near $4,900.

Next 24 Hours Bias   
Strong Bullish

The Euro (EUR)

Key news events today

ECB President Lagarde Speaks (7:30 am GMT)

ECB President Lagarde Speaks (4:45 pm GMT)

What can we expect from EUR today?

The Euro remains stable post-Bulgaria’s adoption, with no fresh shocks reported; markets focus on broader EU responses to global pressures like potential US tariffs under President Trump, as highlighted in European leaders’ statements from January 20. Long-term, the currency’s expansion bolsters investor confidence and lowers borrowing costs for new members, though critics note risks of short-term inflation.

Central Bank Notes:

• The Governing Council of the ECB kept the three key interest rates unchanged at its 4–5 January 2026 meeting, maintaining the main refinancing rate at 2.15%, the marginal lending facility at 2.40% and the deposit facility at 2.00%. This decision aligns with the assessment that the current stance supports medium-term price stability, as inflation edges below the 2% target while growth shows resilience amid balanced risks. Markets and commentary indicate value in holding steady, with no fixed path ahead given uncertainties in data.
• Price dynamics remain stable near target levels. Headline HICP inflation stood at 2.1% in November 2025, with projections for 1.9% in 2026 driven by base effects from energy and easing non-energy components. Services inflation persists somewhat elevated but trends toward moderation, alongside contained food pressures.
• December 2025 Eurosystem staff projections confirm headline inflation at 2.1% for 2025, declining to 1.9% in 2026 and 1.8% in 2027 before nearing 2% in 2028. Downside risks from soft producer prices and anchored expectations offset potential upsides from geopolitics or fiscal measures.
• Euro area GDP growth remains resilient at subdued levels, with Q3 2025 at 0.3% qoq and forecasts around 1.2-1.4% for 2025-2027. Surveys signal stabilization, bolstered by public investment and external demand against softer private spending.
• The labour market stays tight overall, with unemployment steady at 6.4% through October 2025, near historic lows and solid participation. Real incomes support consumption as inflation eases, with credit conditions aiding gradual household and firm expansion.
• Business sentiment reflects caution over US policy, trade tensions, and tariffs, tempered by easing supply chains and a competitive euro. Export sectors gain a modest lift, while domestic drivers like investment build momentum.
• The Governing Council will continue to make data-dependent decisions meeting by meeting, assessing inflation outlook, underlying trends, and transmission. Both hikes and cuts remain possible based on data, avoiding preset paths amid uncertainties.
• Balance sheet normalisation proceeds steadily, with APP and PEPP portfolios shrinking post-reinvestment halts, at a pace deemed suitable without market strain.

​The next meeting is on 4 to 5 February 2026

Next 24 Hours Bias
Weak Bearish

The Swiss Franc (CHF)

Key news events today

No major news event

What can we expect from CHF today?

The Swiss Franc has strengthened notably against major currencies like the USD amid heightened risk-off sentiment driven by US President Trump’s tariff threats on European nations over Greenland. As of January 20, 2026, the USD/CHF pair dropped to around 0.7900, reflecting a 0.91% daily decline and marking the CHF near 2011 highs due to safe-haven demand.

Central Bank Notes:

• At its 11 December 2025 monetary policy assessment, the Swiss National Bank (SNB) is widely expected to leave the policy rate unchanged at 0%, extending the pause that began in September as the Governing Board judges that current settings are sufficient to keep inflation near, but still below, its target while avoiding an unnecessary move into negative rates.
• Recent data show that the tentative rebound in Swiss inflation has stalled, with headline CPI easing from 0.1% year‑on‑year in October to 0.0% in November and core inflation slipping to about 0.4%, reinforcing the view that underlying price pressures remain very weak and that deflation risks, while contained, have not fully disappeared.
• The SNB’s conditional inflation forecast is likely to remain close to the September projections, with inflation still seen averaging roughly 0.2% in 2025, 0.5% in 2026, and 0.7% in 2027 under an unchanged policy rate path, though the latest CPI prints argue for a slightly lower near‑term profile and keep open the option of renewed easing if activity or prices weaken further.
• The global backdrop has deteriorated further, as continuing U.S. tariff actions and softer external demand weigh on world trade, while uncertainty in key European and U.S. markets for Swiss exports persists, leaving the SNB cautious about the growth outlook despite Switzerland’s relatively resilient domestic demand.
• Business and labour-market sentiment in export‑oriented manufacturing remains subdued, with firms reporting pressure on margins from the still‑strong franc and softer foreign orders, although the broader economy is still expected to grow at around 1–1.5% in 2025 and unemployment only drifting up gradually from low levels.
• The SNB continues to stress its willingness to act if deflation risks re‑emerge, reiterating that it can ease policy through renewed rate cuts or targeted foreign‑exchange intervention if necessary, while also highlighting its commitment to transparent communication, including the publication of detailed minutes from recent assessments and ongoing dialogue with international partners on FX policy

The next meeting is on 19 March 2026.

Next 24 Hours Bias
Strong Bullish

The Pound (GBP)

Key news events today

CPI y/y (7:00 am GMT)

What can we expect from GBP today?

The pound remains under pressure from weaker UK jobs data signaling possible BoE easing, trading GBP/USD flat near 1.3450 as it tests key resistance amid US economic releases and global uncertainties like tariffs and Fed leadership issues; while year-to-date losses are modest, upcoming data risks further downside.

Central Bank Notes:

• The Bank of England’s Monetary Policy Committee (MPC) will meet on 18 December 2025, with the current Bank Rate standing at 4.00 per cent after being held in a close 5–4 vote at the 5 November meeting. Market pricing and analyst commentary point to a high risk of a 25‑basis‑point cut to 3.75 per cent, but this remains conditional on incoming inflation and labour‑market data, so the December note should be treated as pre‑decision guidance rather than an ex‑post summary.
• The BoE is expected to leave its quantitative tightening (QT) framework broadly unchanged through year‑end, maintaining the lower reduction pace in gilt holdings that was set earlier in 2025. Official communications still characterise the existing QT path as consistent with a restrictive stance, with policymakers stressing that balance‑sheet reduction will remain gradual and sensitive to market‑liquidity conditions.
• Headline CPI inflation eased to 3.6 per cent year‑on‑year in October 2025, down from 3.8 per cent in September, helped by softer energy and goods prices, though it remains almost twice the 2 per cent target. Underlying inflation pressures, particularly in services, have continued to moderate only slowly, so the MPC’s central projection still envisages inflation moving closer to, but not yet reaching, 3 per cent over the course of 2026, contingent on further normalisation in energy and wage dynamics.
• UK economic activity remains weak heading into the December meeting, with the labour market showing further signs of slackening. The unemployment rate has risen toward just above 5 per cent on the latest three‑month figures to October, while overall regular pay growth has slowed to around the mid‑4 per cent range, reinforcing the view that domestic cost pressures are gradually easing.
• External conditions continue to cloud the outlook, with fragile global growth and fluctuating commodity prices contributing to bouts of financial‑market volatility. The MPC has highlighted that renewed global energy or food price shocks could temporarily slow the pace of disinflation, but such risks are currently judged unlikely to derail the medium‑term downward trajectory for inflation if domestic demand stays subdued.
• The balance of risks around the inflation outlook remains finely poised. Downside risks are linked to persistently weak domestic demand and rising unemployment, while upside risks come from still‑elevated inflation expectations, sticky services inflation, and the possibility that structural changes in the labour market leave less slack than conventional indicators suggest.
• Overall, the MPC’s stance going into December is restrictive but increasingly open to a gradual easing cycle, with any rate cuts expected to be measured and data‑dependent. Policymakers have reiterated that the Bank Rate will need to stay in restrictive territory until they are confident inflation is on a sustainable path back to the 2 per cent target, and they have signalled that the profile of cuts, once started, is likely to be shallow rather than rapid.
• The next meeting is on 5 February 2026.

  Next 24 Hours Bias
  Medium Bullish

The Canadian Dollar (CAD)

Key news events today

No major news event

What can we expect from CAD today?

The Canadian dollar maintains upward momentum, trading firmer against a softening USD around 1.3838-1.3867, driven by recent inflation upticks to 2.4%, tariff worries weighing on the greenback, and technical patterns like a potential double top near 1.39; forecasts suggest testing resistance at 1.3905 before possible declines, with Bank of Canada likely holding rates at 2.25% next week amid 40% hike odds later this year.
​
Central Bank Notes:

• The Governing Council left the target for the overnight rate unchanged at 2.25% at its 10 December 2025 meeting, in line with market expectations and signalling that the earlier easing cycle has likely concluded. The Bank noted that while global tariff tensions and trade uncertainty persist, the external backdrop has stabilised somewhat, reducing the need for additional insurance cuts even as world trade remains fragile.
• The Council acknowledged that uncertainty around U.S. trade policy and tariffs continues to weigh on business sentiment, but recent data show Canadian manufacturing and goods exports holding up better than anticipated. Surveys cited by the Bank suggest export order books have stopped deteriorating, with firms reporting some rebuilding of backlogs despite still‑cautious capital spending plans.
• Canada’s economy rebounded more strongly than expected in the third quarter, with real GDP expanding at an annualised pace of about 2.6% after a 1.8% contraction in Q2, largely on the back of higher crude exports and government spending. Monthly data show output rising 0.2% in September, though flash estimates point to a softer start to Q4 as some sectors give back earlier gains.
• Service sector activity has firmed, with indicators showing the services PMI back above the 50 threshold and broadening gains in business and professional services. However, consumer-facing categories remain mixed, as still‑elevated price levels and only modest real income growth keep a lid on discretionary spending even as tourism and technology‑related services expand.
• Housing markets have continued to stabilise, with national resale activity and prices edging higher through the autumn alongside the earlier decline in borrowing costs. The Bank noted that while some major urban centres are seeing renewed price pressures, tighter underwriting standards and still‑high affordability constraints are expected to cap the pace of any rebound.
• Headline CPI inflation eased to 2.2% year over year in October and is estimated to have remained near that rate in November, keeping it slightly above the 2% target but comfortably within the 1%–3% control range. Core measures have drifted lower, with CPI‑median and CPI‑trim around 3% or below, reinforcing the assessment that underlying price pressures are gradually moderating even as gasoline and some shelter components remain volatile.
• The Governing Council reiterated that the current policy rate is “about the right level” to keep inflation close to target while supporting the economy through a period of structural adjustment, and it signalled a shift away from near‑term easing expectations. While the Bank did not rule out future adjustments, officials stressed that, barring a material downside surprise to growth or inflation, further rate cuts are unlikely before 2026. Attention is now focused on the durability of the recovery and the evolution of core inflation.
• The next meeting is on 28 January 2026.

Next 24 Hours Bias
Medium Bullish

Oil

Key news events today

EIA Crude Oil Inventories (2:30 pm GMT)

What can we expect from Oil today?

Oil prices experienced upward pressure today amid a mix of supportive economic signals and escalating geopolitical tensions. Brent crude traded around $65 per barrel, up approximately 1.66%, while WTI hovered near $60.60, gaining 1.95%. Key drivers included a weakening US dollar boosting commodity appeal, better-than-expected Chinese GDP growth of 5% for last year, and President Trump’s tariff threats against European nations opposing his Greenland proposals.

Next 24 Hours Bias
Weak Bearish

The post IC Markets Global – Europe Fundamental Forecast | 21 January 2026 first appeared on IC Markets | Official Blog.

DXY (U.S. Dollar Index):

Potential Direction: Bearish

Overall momentum of the chart: Bearish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 98.70

Supporting reasons: Identified as a pullback resistance that aligns with the 38.2% Fibonacci retracement, where selling pressures could intensify and potentially cap any upward retracement.

1st support: 98.17

Supporting reasons: Identified as an overlap support, indicating a potential area where the price could again stabilize.

1st resistance: 98.94
Supporting reasons: Identified as a pullback resistance, indicating a potential area that could halt any further upward movement

EUR/USD:

Potential Direction: Buillish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before continuing its bullish move toward the 1st resistance

Pivot: 1.1691

Supporting reasons: Identified as a pullback support that aligns with the 38.2% Fibonacci retracement, where renewed buying pressure could emerge to push the price higher.

1st support: 1.1636

Supporting reasons: Identified as a pullback support, indicating a potential level where the price could stabilize once again.

1st resistance: 1.1750

Supporting reasons: Identified as an overlap resistance, indicating a potential level that could cap further upward movement.

EUR/JPY:

Potential Direction: Bullish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before continuing its bullish move toward the 1st resistance

Pivot: 184.41

Supporting reasons: Identified as a pullback support, where renewed buying pressure could emerge to push the price higher.

1st support: 182.54
Supporting reasons: Identified as swing low support, indicating a potential area where the price could again stabilize.

1st resistance: 185.51
Supporting reasons: Identified as a swing high resistance, indicating a potential level that could cap further upward movement.

EUR/GBP:

Potential Direction: Bullish
Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before rising again toward the 1st resistance.

Pivot: 0.8690

Supporting reasons: Identified as a pullback support, where renewed buying pressure could emerge to push the price higher.

1st support: 0.8651
Supporting reasons: Identified as a multi-swing low support, indicating a potential area where the price could stabilize once more.

1st resistance: 0.8745
Supporting reasons: Identified as an overlap resistance, indicating a potential level that could cap further upward movement.

GBP/USD:

Potential Direction: Bullish
Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before rising again toward the 1st resistance.

Pivot: 1.3405

Supporting reasons: Identified as a pullback support that aligns with the 61.8% Fibonacci retracement, where renewed buying pressure could emerge to push the price higher.

1st support: 1.3320
Supporting reasons: Identified as a swing low support, indicating a potential area where the price could stabilize once more.

1st resistance: 1.3489
Supporting reasons: Identified as an overlap resistance, indicating a potential level that could halt further upward movement.

GBP/JPY:

Potential Direction: Bearish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 212.65

Supporting reasons: Identified as a pullback resistance, where selling pressures could intensify and potentially cap any upward retracement.

1st support: 210.28
Supporting reasons: Identified as a multi-swing low support, indicating a potential level where the price could stabilize once more.

1st resistance: 214.29
Supporting reasons: Identified as a swing high resistance, indicating a potential level that could halt further upward movement.

USD/CHF:

Potential Direction: Bearish

Overall momentum of the chart: Bearish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 0.7937

Supporting reasons: Identified as a pullback resistance, where selling pressures could intensify and potentially cap any upward retracement.

1st support: 0.7859
Supporting reasons: Identified as a swing low support, indicating a potential level where the price could stabilize once again.

1st resistance: 0.7965
Supporting reasons: Identified as a pullback resistance, indicating a potential level that could cap further upward movement.

USD/JPY:

Potential Direction: Bullish

Overall momentum of the chart: Bullish

The price has already bounced off the pivot and may continue its bullish move toward the 1st resistance

Pivot: 157.58

Supporting reasons: Identified as a pullback support that aligns with the 61.8% Fibonacci retracement, where renewed buying pressure could emerge to push the price higher.

1st support: 156.84

Supporting reasons: Identified as an overlap support, indicating a strong area where buyers might return, and the price could stabilize once again.

1st resistance: 159.31

Supporting reasons: Identified as a swing high resistance. This level represents the next key area where upward movement could be capped amid increased selling pressure

USD/CAD:

Potential Direction: Bearish                                                                                                                                                                                  

Overall momentum of the chart: Bearish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 1.3859

Supporting reasons: Identified as a pullback resistance that aligns with the 38.2% Fibonacci retracement, where selling pressures could intensify and potentially cap any upward retracement.

1st support: 1.3799

Supporting reasons: Identified as an overlap support, indicating a key level where the price could stabilize once more.

1st resistance: 1.3923

Supporting reasons: Identified as a swing high resistance, making it a possible target for bullish advances and a level where some sellers could return to cap gains

AUD/USD:

Potential Direction: Bullish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before rising again toward the 1st resistance.

Pivot: 0.6706

Supporting reasons: Identified as a pullback support, where renewed buying pressure could emerge to push the price higher.

1st support: 0.6661

Supporting reasons: Identified as an overlap support that aligns with the 61.8% Fibonacci retracement, this area has provided strong support historically and may attract buying interest for a potential short-term bounce

1st resistance: 0.6766

Supporting reasons: Identified as a swing high resistance, indicating a potential area that could halt any further upward movement.

NZD/USD

Potential Direction: Bullish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before rising again toward the 1st resistance.

Pivot: 0.5778

Supporting reasons: Identified as a pullback supportthat aligns with the 61.8% Fibonacci retracement, where renewed buying pressure could emerge to push the price higher.

1st support: 0.5690

Supporting reasons: Identified as a pullback support, this area has provided strong support historically and may attract buying interest for a potential short-term bounce

1st resistance: 0.5822

Supporting reasons: Identified as a pullback resistance that aligns with the 127.2% Fibonacci projection, indicating a potential area that could halt any further upward movement.

US30 (DJIA):

Potential Direction: Bearish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 48,844.50

Supporting reasons: Identified as an overlap resistance, where selling pressures could intensify and potentially cap any upward retracement.

1st support: 48,330.52

Supporting reasons: Identified as an overlap support, suggesting a potential area where the price could stabilize once again.

1st resistance: 49,617.45

Supporting reasons: Identified as a multi-swing high resistance, indicating a potential area that could halt any further upward movement.

DE40 (DAX):

Potential Direction: Bullish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before rising again toward the 1st resistance.

Pivot: 24,455.54

Supporting reasons: Identified as a pullback support, where renewed buying pressure could emerge to push the price higher.

1st support: 23,870.49

Supporting reasons: Identified as an overlap support, indicating a key level where the price could stabilize once more.

1st resistance: 25,036.29

Supporting reasons: Identified as a pullback resistance, indicating a potential area that could halt any further upward movement.

US500 (S&P 500):

Potential Direction: Bearish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 6,901.20

Supporting reasons: Identified as an overlap resistance, where selling pressures could intensify and potentially cap any upward retracement.

1st support: 6,795.90

Supporting reasons: Identified as a pullback support, indicating a potential level where the price could stabilize once again.

1st resistance: 6,997.80

Supporting reasons: Identified as a swing high resistance, indicating a potential area that could halt any further upward movement.

BTC/USD (Bitcoin):

Potential Direction: Bearish

Overall momentum of the chart: Bearish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 90.345.63

Supporting reasons: Identified as a pullback resistance that aligns with the 38.2% Fibonacci retracement, where selling pressures could intensify and potentially cap any upward retracement.

1st support: 86,783.95

Supporting reasons: Identified as a swing low support, indicating a potential level where the price could stabilize once more.

1st resistance: 92,360

Supporting reasons: Identified as a swing high resistance, indicating a potential area that could halt any further upward movement.

ETH/USD (Ethereum):

Potential Direction: Bearish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before continuing its bearish move down toward the 1st support.

Pivot: 3,051.82

Supporting reasons: Identified as a pullback resistance, where selling pressures could intensify and potentially cap any upward retracement..

1st support: 2,807.93

Supporting reasons: Identified as a swing low support, indicating a potential level where the price could stabilize once more.

1st resistance: 3,280.43
Supporting reasons: Identified as a pullback resistance, indicating a potential area that could halt any further upward movement.

WTI/USD (Oil):

Potential Direction: Bullish

Overall momentum of the chart: Bullish

The price has already bounced off the pivot and may continue its bullish move toward the 1st resistance

Pivot: 58.69

Supporting reasons: Identified as a pullback support, where renewed buying pressure could emerge to push the price higher.

1st support: 56.93
Supporting reasons: Identified as an overlap support, indicating a key level where the price could stabilize once more.

1st resistance: 60.69
Supporting reasons: Identified as a pullback resistance that aligns with the 61.8% Fibonacci retracement, indicating a potential area that could halt any further upward movement.

XAU/USD (GOLD):

Potential Direction: Bullish

Overall momentum of the chart: Bullish

The price could see a short-term pullback toward the pivot before rising again toward the 1st resistance.

Pivot: 4,639.58

Supporting reasons: Identified as an moverlapsupport, where renewed buying pressure could emerge to push the price higher.

1st support: 4,549.86
Supporting reasons: Identified as an overlap support, indicating a key level where the price could stabilize once more.

1st resistance: 4,719.70
Supporting reasons: Identified as a resistance that is supported by the 161.8% Fibonacci extension and the 78.6% Fibonacci projection, indicating a potential area that could halt any further upward movement.

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The post Wednesday 21st January 2026: Technical Outlook and Review first appeared on IC Markets | Official Blog.

Global Markets:

•  Asian Stock Markets : Nikkei down 0.60%, Shanghai Composite up 0.16%, Hang Seng down 0.19% ASX down 0.43%
• Commodities : Gold at $4843.71 (1.64%) Silver at $93.768 (-0.92%), Brent Oil at $64.18 (-1.12%), WTI Oil at $59.77 (-0.98%)
• Rates : US 10-year yield at 4.283, UK 10-year yield at 4.4570, Germany 10-year yield at 2.8603

News & Data:

• (EUR) German ZEW Economic Sentiment  59.6 to 50.0 expected

Markets Update:

Asian stock markets are trading mostly lower on Wednesday, tracking broadly negative cues from Wall Street overnight, as investors remain cautious amid renewed trade war concerns between the United States and Europe. Market sentiment has been dented by U.S. President Donald Trump’s threat to impose fresh tariffs on European nations if they oppose his proposal to acquire Greenland, a move he says is critical for U.S. national security. Asian markets had already ended mostly lower on Tuesday.

Australian shares are extending losses for a third straight session, with the S&P/ASX 200 slipping below the 8,800 level. Weakness in financial and technology stocks is outweighing gains in gold miners and energy shares. Major banks are under pressure, while tech stocks such as Block, Zip and Xero are seeing notable declines. In contrast, gold miners are outperforming, supported by safe-haven demand. Paladin Energy surged sharply after reporting strong growth in uranium production and sales. Meanwhile, Australia’s leading economic index showed a modest improvement in December.

Japanese stocks are also trading lower, with the Nikkei 225 falling below 52,700 amid selling in exporters, automakers and banking stocks. Losses in financial shares are dragging the market, although select technology stocks are showing resilience.

Elsewhere in Asia, markets in New Zealand, Singapore, South Korea, Taiwan and Indonesia are posting moderate losses, while China, Hong Kong and Malaysia are edging higher. On Wall Street, U.S. stocks slumped sharply on Tuesday, while European markets also closed lower. Rising trade tensions pushed crude oil prices higher.

Upcoming Events:

• 03.00 PM GMT – USD Pending Home Sales m/m

The post Wednesday 21st January 2026: Asian Markets Slide on Trade War Fears After Wall Street Losses first appeared on IC Markets | Official Blog.

US Markets Smashed on Tariff Concerns – Nasdaq down 2.4%

US equity markets were hit hard in their first trading session of the week as investors continued to react to President Trump’s latest tariff threats. The Dow Jones fell 1.76% to close at 48,488, while the S&P 500 dropped 2.06% to 6,796 and the Nasdaq led losses, sliding 2.39% to finish at 22,954, as risk sentiment deteriorated sharply across global markets. US Treasury yields surged, extending the recent sell-off in global bonds. The 2-year Treasury yield rose 1.1 basis points to 3.597%, while the benchmark 10-year yield jumped 7.0 basis points to 4.293%, its highest level since August. The move was compounded by a heavy sell-off in Japanese government bonds earlier in the day, which spilled over into other global bond markets. Despite the rise in yields, the US dollar came under significant pressure as the so-called “sell America” trade gathered momentum; the DXY fell 0.83% to 98.57. In commodity markets, oil prices spiked amid renewed tariff concerns and reports of a temporary suspension of production at Kazakhstan’s major oil fields. Brent crude rose 1.53% to $64.92 a barrel, while WTI crude gained 1.51% to $60.34. Gold continued to surge as investors sought safety, rallying 1.98% to a fresh record high of $4,763.43 an ounce.

Are Markets Heading for a Tailspin in the Coming Days

Volatility was hugely elevated across financial markets yesterday as investors started to price in potential dramatic changes in underlying fundamentals. Stock markets took big hits across the globe. Gold and silver again punched up to brand new record levels. Japanese markets saw a run on bonds, while US yields and the dollar took diverging paths—yields pushing to multi-month highs while the greenback lost big numbers against the majors. A lot will now depend on the so-called “TACO Trade” — Trump Always Chickens Out — especially with regard to his aspirations towards Greenland. Any escalation in rhetoric and the potential for bigger tariffs and a trade war with Europe could see some of yesterday’s moves move into a tailspin, while a “TACO” move could see a calming in volatility and some corrections, not just in the recent moves, but also in correlations.

Another Busy Day Ahead for Traders

Looking ahead, traders are bracing for further volatility in the sessions ahead, with scheduled comments from world leaders expected to drive price action. There is very little on the schedule in the Asian session today, although, again, traders will keep a close eye on Japanese markets after yesterday’s bond crash. The European session will see the initial focus on UK markets again, with key CPI data due out. The headline year-on-year number is expected to show a ‘sticky’ 3.3% rise, up from 3.2% last month, which should continue to add fuel to the MPC hawk’s fire. Focus will then jump across the Channel to Davos, Switzerland, and the WEF annual meeting, with ECB President Christine Lagarde due to speak early in the day. However, the main headlines are likely to come later in the day when President Trump speaks from the event. The New York session is likely to be heavily influenced by any comments from the President; however, US Pending Home Sales data will also be released later in the day.

The post General Market Analysis – 21/01/26 first appeared on IC Markets | Official Blog.

IC Markets Global – Asia Fundamental Forecast | 21 January 2026

What happened in the U.S. session?

The U.S. financial session, was dominated by risk-off sentiment from President Trump’s tariff threats over Greenland and a global bond selloff spilling from Japan, rather than new macro data, driving Treasury yields sharply higher (10-year to 4.29%, 30-year to 4.94%), pressuring equities and the dollar lower, boosting gold/silver to records, and lifting oil amid trade jitters.

What does it mean for the Asia Session?

President Trump’s special address at the World Economic Forum in Davos, scheduled from 13:30–14:15 GMT, could influence global trade sentiment and Asian FX pairs amid ongoing US-China détente signals. Japan’s markets face heightened volatility with the 40-year bond yield hitting 4% for the first time, signaling BOJ readiness for further rate hikes amid yen weakness and inflation risks, potentially pressuring the Nikkei after recent slides..

The Dollar Index (DXY)

Key news events today

President Trump Speaks (1:30 pm GMT)

Pending Home Sales m/m (3:00 pm GMT)

What can we expect from DXY today?

The US dollar faces downward pressure, amid a dovish Federal Reserve stance and soft US economic data, with forecasts indicating limited upside potential for the week. The Dollar Index (DXY) hovers in a 98.0–100.0 range, showing bearish bias after a 9% decline in 2025, as narrowing yield advantages favor rivals like the euro and pound.

Central Bank Notes:

• The Federal Open Market Committee (FOMC) is widely expected to lower the federal funds rate target range by 25 basis points to 3.50%–3.75% at its December 9–10, 2025, meeting, marking the third consecutive cut after the October reduction to 3.75%–4.00%
• The Committee continues to pursue maximum employment and 2% inflation goals, with the labor market showing further softening as the unemployment rate rose to 4.4% in September 2025 amid modest job gains.
• Officials note persistent downside risks to growth alongside resilient activity, with inflation easing to 3.0% year-over-year CPI in September but remaining elevated due to tariff effects; core PCE stands at around 2.8% as of October.
• Economic activity grew at a 3.8% annualized pace in Q2 2025 per revised estimates, though Q3 and Q4 face headwinds from trade tensions, fiscal restraint, and data disruptions like the government shutdown.
• September’s Summary of Economic Projections forecasts 2025 unemployment at a median of 4.5%, with PCE inflation near 3.0% and core PCE at 3.1%, signaling a gradual disinflation path. Updates expected on December 10 may adjust for higher unemployment and lower growth.
• The Committee maintained its data-dependent approach, noting a softening labor market and inflation above the 2% target, while deciding to lower the federal funds rate target range by 25 basis points to 3.50%-3.75%. Dissent persisted, with multiple members opposing the cut or advocating for a hold, reflecting divisions similar to recent meetings.​
• The FOMC confirmed the conclusion of its quantitative tightening program effective December 1, 2025, with Treasury rolloff caps at $5 billion per month and agency MBS caps at $35 billion per month to ensure ample reserves and market stability.
• The next meeting is scheduled for 27 to 28 January 2026.

Next 24 Hours Bias

Medium Bearish 

Gold (XAU)

Key news events today

President Trump Speaks (1:30 pm GMT)

Pending Home Sales m/m (3:00 pm GMT)

What can we expect from Gold today?

Gold’s rally marks a 68.3% year-over-year gain, with the gold-to-silver ratio at a 2013 low of 59:1 amid peers’ outperformance. Technical supports sit at $4,600-$4,640, with bullish gaps signaling strength above $4,360. Investors favor patience for consolidation, as the uptrend holds above key levels.

Next 24 Hours Bias
Strong Bullish

The Australian Dollar (AUD)

Key news events today

No major news event

What can we expect from AUD today?

The Australian Dollar (AUD) showed resilience on January 21, 2026, amid ongoing USD weakness driven by US-EU trade tensions and President Trump’s tariff threats, particularly over Greenland, which bolstered AUD/USD toward recent highs around 0.67455–0.6760.

​
Central Bank Notes:

• The Reserve Bank of Australia held its cash rate steady at 3.60% at the November 2025 policy meeting, adopting a cautious tone amid a surprise uptick in inflation data for the September quarter. This marks the fourth consecutive pause since the 25 basis point cut in August. The Board attributed some of the inflation rise to temporary factors like higher petrol prices and council rates, but noted signs of more persistent pressures from consumer demand.​
• Policymakers emphasized vigilance on inflation, with trimmed mean inflation expected to remain elevated in the near term before nearing the 2–3% target midpoint by mid-2027. Recent data showed underlying inflation staying above target until at least the second half of 2026, prompting upward revisions to forecasts. Capacity pressures are seen as slightly more pronounced than previously assessed, delaying any easing.
• Headline CPI for the September quarter exceeded expectations, driven partly by temporary items, while underlying measures signal ongoing stickiness. The shift to monthly CPI reporting, with the first full edition in November 2025, will enhance real-time inflation monitoring. Housing and services remain resilient contributors to price pressures.
• Domestic demand shows firmness in services alongside below-trend growth elsewhere, with capacity pressures not expected to ease significantly. The labor market is gradually softening, with unemployment projected to stabilize around 4.4%, though wage growth and productivity dynamics keep unit labor costs a concern. Household spending faces headwinds from high borrowing costs.​
• Global risks include geopolitical tensions and commodity volatility, set against modestly revised-up world growth outlooks. The Board describes its policy as mildly restrictive and data-dependent, balancing inflation control with employment goals. No rate hike was considered despite the inflation surprise.
• Monetary policy remains mildly restrictive to address lingering price stability risks amid household and global vulnerabilities. Communications reaffirm the dual mandate of 2–3% inflation and full employment, with readiness to adjust based on incoming data.​
• Market expectations point to the cash rate holding through early 2026, with a possible modest cut to 3.3% mid-year if inflation eases as forecast. The new monthly CPI data will be key for timely insights.
• Monetary policy remains mildly restrictive, balancing progress on price stability against vulnerabilities in household demand and global outlook. Board communications reaffirm a dual mandate: price stability and full employment, while underscoring readiness to respond should risks materialize sharply.
• Analysts generally expect the cash rate to remain at current levels through early 2026, with only modest cuts possible later in the year if inflation moderates. The new monthly CPI release (first full edition Nov 2025) will be watched closely for timely signals on price trends.
• The next meeting is on 2 to 3 February 2026.

Next 24 Hours Bias

Medium Bullish

The Kiwi Dollar (NZD)

Key news events today

No major news event

What can we expect from NZD today?

The New Zealand Dollar (NZD) showed resilience amid USD weakness, trading around 0.5829 against the USD, up 0.49% for the session and reflecting a three-week high driven by softer US economic data and tariff concerns. Recent reports highlight the NZD/USD pair advancing due to Federal Reserve independence worries and expectations of US monetary easing.

Central Bank Notes:

• The Monetary Policy Committee (MPC) left the Official Cash Rate (OCR) unchanged at 2.25% at its 26 November 2025 meeting, following the widely anticipated 25-basis-point reduction from 2.50%, and signaled that policy is now firmly in stimulatory territory while keeping the option of further easing on the table if needed.
• The decision was again reached by consensus, with members judging that the cumulative 325 basis points of easing over the past year warranted a period of assessment, even as several emphasized a willingness to cut further should incoming data point to a more protracted downturn or renewed disinflationary pressures.
• Headline consumer price inflation is projected to hover near 3% in late 2025 before gradually easing toward the 2% midpoint of the 1–3% target band through 2026, supported by contained inflation expectations around 2.3% over the two-year horizon and an expected pickup in spare capacity.
• The MPC noted that domestic demand remains subdued but shows tentative signs of stabilisation, with softer household spending and construction only partially offset by improving services activity; nevertheless, policymakers still expect services inflation to ease as wage growth moderates and the labour market loosens further over the coming year.
• Financial conditions continue to ease as wholesale and retail borrowing rates reprice to the lower OCR, contributing to gradually rising mortgage approvals and improving housing-related sentiment, although broader business credit growth remains patchy and sensitive to uncertainty about the durability of the recovery.
• Recent data confirm that GDP momentum is weak but not deteriorating as sharply as earlier in 2025, with high-frequency indicators pointing to a shallow recovery from a low base and ongoing headwinds from elevated living costs and fragile confidence weighing on discretionary consumption and investment.
• The MPC reiterated that external risks remain skewed to the downside, particularly from softer Chinese demand and uncertainty around United States trade policy, but noted that a lower New Zealand dollar continues to provide some offset via improved export competitiveness and support for tradables inflation.
• Looking ahead to early 2026, the Committee maintained a mild easing bias, indicating that a further cut toward 2.00–2.10% cannot be ruled out if activity fails to gain traction or if inflation undershoots projections, but current forecasts envisage the OCR remaining near 2.25% for an extended period, provided inflation converges toward target and the recovery proceeds broadly as expected.
• The next meeting is on 18 February 2026.

Next 24 Hours Bias

Medium Bearish

The Japanese Yen (JPY)

Key news events today

No major news event

What can we expect from JPY today?

The Japanese Yen weakened further against the USD, with USD/JPY surpassing 158.50, driven by Prime Minister Takaichi’s snap election call and tax cut pledges that fueled fiscal worries, surging bond yields, and skepticism over the LDP’s prospects.

Central Bank Notes:

• The Policy Board of the Bank of Japan will meet on 18–19 December with markets almost fully pricing a 25-basis-point hike, which would raise the short-term policy rate from 0.50% to around 0.75%, as the bank moves further away from its ultra-loose stance while stressing that any tightening will remain gradual and data-dependent.
• The BOJ is expected to continue guiding the uncollateralized overnight call rate in a narrow band around the new policy rate, near 0.75%, while signaling that the pace and timing of any additional hikes will depend on how past increases affect bank lending, corporate financing conditions, and overall economic activity.
• The quarterly path of JGB purchases remains on a pre-announced, gradual taper: outright purchases are being reduced by about ¥400 billion per quarter through March 2026, then by roughly ¥200 billion per quarter from April to June 2026, with the bank still aiming for JGB purchases to settle near ¥2 trillion in Q1 2027 and retaining flexibility to adjust the pace if market functioning or yield volatility deteriorate.
• Japan’s economy has softened in the near term, with Q3 2025 GDP contracting at an annualized rate of approximately 2.3%, as weaker residential investment and external demand weighed on activity. Meanwhile, business sentiment in manufacturing has recently improved to a roughly four-year high.
• Core consumer inflation (excluding fresh food) accelerated to around 3.0% year-on-year in October, up from 2.9% in September and remaining above the BOJ’s 2% target, while the “core-core” measure excluding both fresh food and energy rose to about 3.1%, underscoring persistent underlying price pressures.
• In the very near term, some input-cost pressures are easing as earlier import price surges fade, but services inflation linked to labor shortages, along with steady wage gains, continues to support broader price momentum; firms’ and households’ medium-term inflation expectations remain anchored slightly above 2%, keeping short-term inflation risks tilted to the upside.
• For the coming quarters, the BOJ assesses that real growth will likely run below potential as the economy digests tighter financial conditions and past yen depreciation. However, accommodative real rates, positive real wage growth, and improving corporate sentiment are expected to help sustain a modest recovery in private consumption and business investment.
• Over the medium term, as overseas demand stabilizes and domestic labor markets remain tight, the BOJ expects wage settlements and inflation expectations to keep core inflation on a gradual upward trajectory around or slightly above 2%, providing room for further cautious rate normalization as long as financial conditions remain supportive and the recovery is not derailed.
• The next meeting is scheduled for 22 to 23 January 2026.

Next 24 Hours Bias

Medium Bearish

Oil

Key news events today

EIA Crude Oil Inventories (2:30 pm GMT)

What can we expect from Oil today?

Oil prices edged higher on January 20 amid dollar weakness, with Brent up 0.2% to $64.09/bbl and WTI to $59.58/bbl, though trading remained cautious ahead of OPEC+ policy reviews. Broader risks from Middle East tensions and Syria’s oil recovery challenges limit upside, with futures curves signaling longer-term bearish fundamentals.

Next 24 Hours Bias
Medium Bearish

The post IC Markets Global – Asia Fundamental Forecast | 21 January 2026 first appeared on IC Markets | Official Blog.

• US is the premier destination for global capital
• US trade deficit is narrowing with an unprecedented pace
• Free trade should be fair trade, rebalancing must continue
• Frustrated with the Fed for refusing to do an internal investigation
• Asking European allies to understand that Greenland needs to be part of the US
• “Why don’t European countries sit down and wait for president Trump to address them”

His comments cover a range of topics here but as we know, it’s from the perspective of a Trump loyalist. The headline remark should be one directed in response to the Danish pension fund selling off roughly $100 million in Treasuries. It is one that the fund itself claims to be not related to the Greenland situation and more so because of “poor US government finances”.

It’s a bit of a warning signal perhaps. $100 million is a drop in the bucket for a fund that holds a total of $25.7 billion in assets. So for now, it isn’t going to be that impactful on market sentiment.

In any case, there are many reasons for countries to diversify their current financial positions. And to be fair, it’s not just isolated to it being a step away from US assets alone. The de-dollarisation and currency debasement push is what is keeping precious metals the preferred choice for investors right now.

In any case, Trump will be about three hours late to Davos today after an issue with Air Force One earlier. That forced the US president to switch planes to make the trip, where he is expected to deliver his special address at 1330 GMT later today. So, definitely be on the lookout for that one.

But in the coming two days, any meetings with European leaders and his usual Truth Social posts will be pivotal in trying to get a feel of the whole Greenland situation. And of course, the tariffs threat that is being pushed on European countries.

This article was written by Justin Low at investinglive.com.

• Prior +3.2%
• Core CPI +3.2% vs +3.3% y/y expected
• Prior +3.2%

Stubborn, stubborn inflation. Headline annual inflation nudged higher in December, driven partly by higher tobacco prices. That comes after the recently-introduced excise duty increases on that front. But adding to that, airfares also saw prices rising more than a year ago – which is largely due to the Christmas holiday period.

But overall, prices in general remain sticky and stubborn and that is even more evident in the core estimates.

Core annual inflation remains unchanged to end the year at 3.2%. The breakdown even shows a marginal increase in both goods inflation (up to 2.2% from 2.1% previously) and services inflation (up to 4.5% from 4.4% previously). The latter of course remains the most troubling spot and is something the BOE won’t be able to take much comfort in.

As things stand, it doesn’t look like were anywhere near the next rate cut. A softening labour market picture will add to potential stagflation risks this year but for now at least, the overall economic picture is still relatively resilient.

This article was written by Justin Low at investinglive.com.

In case you missed out on this, it’s not just all about Trump and his shenanigans this week:

• Japan bond yields continue to surge higher on the week
• This is the scariest chart I’ve seen in years
• JGB sell-off jars global rates as election fiscal fears flare, but some respite today
• Japan opposition urges bond buybacks as JGB volatility intensifies

One of the most important developments right now is what is happening with the Japanese bond market. The Takaichi fallout continues as Japan bond yields surged with a steepening of the curve. 40-year yields hit the 4% mark for the first time ever and 30-year yields were not too far away from crossing that line yesterday.

The selloff this week has been rather intense. If you wind back the clock, to think about a 40 bps range for Japanese yields might be something that could be fit into a yearly range or longer. In the present case, it’s what we’re seeing with a weekly range instead. Wild.

Now, the bond rout this week is finding a bit of respite today. 30-year yields are down some 20 bps to 3.71% currently. And while that seems like a sizable move, yields in that tenure are still up 22 bps this week alone after accounting for today’s slide.

Policymakers in Tokyo will have to try and figure out what to do soon, as markets don’t appear to be letting up in the big picture. The relief today doesn’t hint at one that might be sustainable, that especially since the fundamentals driving the move have not changed whatsoever in the past 24 hours.

The Takaichi trade is still very much alive with market players anticipating her to consolidate power after calling for a snap election for 8 February. From before:

The dam that has been holding back the risks involving Japan’s ballooning fiscal and debt position is breaking. And alongside the dollar falling out of favour, this is another key reason pushing traders and investors to lean towards the likes of gold in such a time.

This article was written by Justin Low at investinglive.com.