Jan. 19: MARKET OVERVIEW
FXBAZOOKA.com - Caution ahead of the European Central Bank’s meeting on Thursday and Greek election on Sunday as the aftershocks from the Swiss National Bank’s decision to untie franc from euro last week made many investors wary of risk.
USD/JPY tested 116.90. Demand for safe haven Japanese yen rose after the Shanghai Composite Index slid by 7.1% (Chinese brokerages slid after regulators took measures to rein in margin trading, reports Bloomberg).
EUR/USD is trading in the 1.1550 area after dipping to 11-year low at 1.1460 on Friday. Many investors expect the ECB to launch a large-scale sovereign bond-buying program.
The US markets shut on Monday for a public holiday, so it’s a low liquidity environment. Meanwhile, USD remains strong after a report on Friday showed US household confidence surged on a strengthening job market and lower fuel costs.
On Tuesday China will release Q4 GDP numbers. Traders will be also paying attention to comments from the Bank of Japan Governor Haruhiko Kuroda says after a two-day policy meeting starting on Tuesday.