The Trading Pair

Monday, January 21th

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Hello and welcome to today’s market snapshot for Tuesday, January 21st. Let’s dive into the key economic updates and their potential impact on the markets.

Headlines:

  • UK Employment Data:

    • The UK labor market showed resilience as Claimant Count Change came in at just 0.7K, well below the expected 10.3K increase. Wages also surged, with the Average Earnings Index at 5.6%, reflecting strong income growth. The Unemployment Rate edged up slightly to 4.4%.

    • Eurozone Sentiment Declines:

      • German ZEW Economic Sentiment fell sharply to 10.3, missing forecasts of 15.2, signaling concerns over Europe’s largest economy. Similarly, the Eurozone ZEW reading dropped to 18.0, below expectations of 16.9.

      • Canadian CPI Cools:

        • Canada’s inflation slowed in December, with CPI m/m at -0.4%, slightly better than forecast but still reflecting a cooling trend. Core CPI also fell to -0.3%, raising questions about the Bank of Canada’s next moves.

        • New Zealand Stability:

          • Dairy prices rebounded with the GDT Price Index up 1.4%. Meanwhile, CPI for Q4 met expectations at 0.5%, showing stable inflation trends.

            • Market Movements:

            • US Dollar Index (DXY):
              The DXY is steady as mixed global data provides little directional push. Softer Eurozone sentiment might lend slight support to the dollar.

            • Commodities and Crypto:

              • Bitcoin (BTC): Holding steady around $27,200, with no major market catalysts.
              • Gold: Up 0.4% to $1,944 per ounce, benefiting from safe-haven demand amid weaker sentiment data.
              • Silver: Slightly higher at $24.20 per ounce, tracking gold’s gains.

                • That’s your quick market update for today. Stay tuned for more insights as we continue to monitor key developments!

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                The Trading PairBy Jayanjan Mukherjee