A1 Trading Company

Ticker tape by TradingView

January 29, 2022

Forex Market Recap (23-28 January 2022)

Bart Kurek

The US Dollar was on top this week as traders anticipated and reacted to a hawkish monetary policy statement from the Fed. The high inflation environment and a global monetary policy tightening regime continued to dominate the markets. Risk currencies didn't do very well to this news with NZD and AUD fading lower through the rest of the week with USD strength and risk-off vibes.

USD:

  • Flash Manufacturing PMI at 55.0 in January vs 57.7 in December
  • Home Prices rose 18.8% y/y on the S&P CoreLogic Case-Shiller National Home Price Index
  • Q4 GDP exceeding expectations, economy expanded at 6.9% annualised rate
  • Durable goods orders fell by 0.9% in December after soaring by an upwardly revised 3.2% in November
  • University of Michigan’s final Consumer Sentiment Index for January came in at 67.2 vs 70.6 in December
  • Core PCE price index rose 4.9% from a year ago, the fastest gain since 1983

EUR:

  • French Flash Services PMI tumbled from 57.0 to 53.1 vs 55.3 forecast
  • French Flash Manufacturing PMI dipped from 55.6 to 55.5
  • German Flash Services PMI up from 48.7 to 52.2 vs 47.9 forecast
  • German Flash Manufacturing PMI up from 57.4 to 60.5
  • Flash Eurozone PMI Composite Output Index falls to an 11-month low of 52.4 vs 53.3 in December
  • Bundesbank says "German economy likely shrunk in Q4"
  • Euro area Economic Sentiment Indicator falls to 112.7 in January

GBP:

  • Flash Manufacturing PMI dipped in January to 56.9 vs 57.9 in December
  • CBI says "Factory costs rising at fastest pace since 1980"
  • UK borrows less than expected in December as Covid impact eases
  • The latest Confederation of British Industry (CBI) Industrial Trends survey said UK output volumes in the previous quarter to January grew at a slower pace

CAD:

  • The BOC surprisingly kept interest rates at 0.25% but signaled future rate hikes

JPY:

  • BOJ’s Kuroda vows easy policy as wage talks begin
  • Core CPI for December: +0.9% vs +0.8% previous
  • BOJ Summary of Opinions "Seeing higher inflation but unlikely to go past target"
  • IMF urges Japan to scale back emergency pandemic support and consider raising taxes after the recovery

AUD:

  • Flash Manufacturing PMI down from 57.7 to 55.3
  • Flash Services PMI tumbled from 55.1 to 45.0
  • AU NAB business confidence slides 24 points to -12 in December, as surge in coronavirus cases affects consumer spending and staffing
  • Quarterly CPI accelerates from 0.8% to 1.3% vs 1.0% forecast in Q4 2021
  • Annual inflation closer to middle of RBA’s 2–3% target range at 2.6% vs 2.3% expected
  • Trimmed mean CPI jumps from 0.7% to 1.0% vs 0.7% forecast

NZD:

  • The BNZ Business New Zealand Performance of Services Index for December was 49.7 vs 47.5
  • Fonterra raises farmgate milk price forecast to a range of NZ$8.90-9.50
  • Credit card spending rebounded by 1.2% after previous 0.4% dip
  • Consumer prices up by 5.9% from a year ago in Q4 2021, the highest in 30 years and much faster than the RBNZ’s 1–3% target range

A1 Edgefinder

#1 Market Scanner Tool
Take 10% off using code "READER"
GET ACCESS NOW
Want to See Our Trades?

Join The VIP Community!

Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
Listen to More Episodes
Why the New FOMC Decision Matters

Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]

Read More
Shocking CAD Inflation News

Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]

Read More
2 Paths for Aussie Bears

At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram