There will not be much statistical data this week. The Monday holiday in the US and the anticipation of the Fed meeting at the beginning of February create the conditions for saving strength, and the currency section can take advantage of this.
USD: asylum status activated
The key publications of this five-day period are the release of the US retail sales and industrial production for December 2022. In both cases, a deterioration of the economy is expected, which could lead investors to seek refuge from risk, e.g. in the USD. This could strengthen the position of the American currency.
GBP: signals of economic weakness
The UK will release a block of price reports – the general inflation statistics for December 2022 and its main components. In addition, the market awaits information on the employment sector. The consumer price index is likely to adjust after soaring to 10.7% y/y. The labour market will also remain neutral, but there will be little support for GBP in this.
JPY: interventions in focus
The Bank of Japan in its meeting is likely to decide to keep interest rates unchanged, and comments on interventions will be made. Cash injections are keeping the yen strong, but this is temporary; once the interventions stop, the JPY will revert to a devaluation strategy.
Brent: it’s all about forecasts
