A Week in the Market: Preparing Parachutes (29 January – 2 February)
<div><img width="360" height="360" src="https://blog.roboforex.com/wp-content/uploads/2024/01/29.01.2024-360×360.jpg" class="attachment-thumbnail size-thumbnail wp-post-image" alt="A Week in the Market: Preparing Parachutes (29 January – 2 February)" style="margin-bottom: 15px;" decoding="async" loading="lazy" /></div><p>The market is entirely focused on the Federal Reserve’s meeting, but other crucial events may unfold in the coming days: stock market <a href="https://blog.roboforex.com/blog/2020/08/20/what-is-volatility-and-how-to-use-it-on-forex/" data-internallinksmanager029f6b8e52c="150" title="Volatility">volatility</a> will likely increase by mid-week.</p>
<h2>USD: everything depends on the Fed</h2>
<figure><img decoding="async" width="1200" height="627" src="https://blog.roboforex.com/wp-content/uploads/2021/06/audusd-1.jpg" alt="USD: everything depends on the Fed" class="wp-image-8755" srcset="https://blog.roboforex.com/wp-content/uploads/2021/06/audusd-1.jpg 1200w, https://blog.roboforex.com/wp-content/uploads/2021/06/audusd-1-360×188.jpg 360w, https://blog.roboforex.com/wp-content/uploads/2021/06/audusd-1-768×401.jpg 768w, https://blog.roboforex.com/wp-content/uploads/2021/06/audusd-1-150×78.jpg 150w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure><p>No surprises are expected from the regulator at this meeting, with the <a href="https://blog.roboforex.com/blog/2019/10/22/trading-news-how-to-earn-on-interest-rates/" data-internallinksmanager029f6b8e52c="90" title="Interest rate">interest rate</a> likely to remain at 5.50% per annum. However, the market trend for the coming weeks will depend on comments from Federal Reserve officials. Soon, the Fed should decide whether to reduce the rate in March or wait until May. Although the USD is currently in a strong position, <a href="https://blog.roboforex.com/blog/2019/11/28/signals-on-forex-where-to-search-how-to-find-filter-and-create/" data-internallinksmanager029f6b8e52c="101" title="Signals">signals</a> about the upcoming easing of monetary policy may weaken it.</p>
<h2>EUR: focus on prices</h2>
<figure><img decoding="async" width="1200" height="627" src="https://blog.roboforex.com/wp-content/uploads/2019/12/eurusd-1-1200×627.jpg" alt="EUR: focus on prices" class="wp-image-2477" srcset="https://blog.roboforex.com/wp-content/uploads/2019/12/eurusd-1.jpg 1200w, https://blog.roboforex.com/wp-content/uploads/2019/12/eurusd-1-360×188.jpg 360w, https://blog.roboforex.com/wp-content/uploads/2019/12/eurusd-1-768×401.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure><p>Germany is set to report on the <a href="https://blog.roboforex.com/blog/2019/10/29/trading-news-how-to-make-money-on-gdp/" data-internallinksmanager029f6b8e52c="93" title="GDP">GDP</a> for Q4 2023: the economy might have deepened the recession and contracted by 0.3%, which is negative news for the <a href="https://roboforex.com/beginners/info/charts/forex/eurusd/" data-internallinksmanager029f6b8e52c="35" title="EUR/USD">EUR</a> exchange rate. The eurozone is gearing up to provide updates on the consumer price index in January. The indicator might have decreased from 2.9% seen earlier to 2.8% y/y.</p>
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<h2>GBP: chances for growth</h2>
<figure><img loading="lazy" decoding="async" width="1200" height="627" src="https://blog.roboforex.com/wp-content/uploads/2020/09/gbp-2.jpg" alt="GBP: chances for growth" class="wp-image-5696" srcset="https://blog.roboforex.com/wp-content/uploads/2020/09/gbp-2.jpg 1200w, https://blog.roboforex.com/wp-content/uploads/2020/09/gbp-2-360×188.jpg 360w, https://blog.roboforex.com/wp-content/uploads/2020/09/gbp-2-768×401.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure><p>The Bank of England will likely keep the interest rate at 5.25% per annum at the next meeting. Like other central banks, the English regulator will wait for the Federal Reserve’s active actions and embark on the monetary easing cycle later. The <a href="https://roboforex.com/beginners/info/charts/forex/gbpusd/" data-internallinksmanager029f6b8e52c="36" title="GBP/USD">GBP</a> has a chance for growth.</p>
<h2>JPY: sideways movement</h2>
<figure><img loading="lazy" decoding="async" width="1200" height="627" src="https://blog.roboforex.com/wp-content/uploads/2020/11/jpy.jpg" alt="JPY: sideways movement" class="wp-image-6163" srcset="https://blog.roboforex.com/wp-content/uploads/2020/11/jpy.jpg 1200w, https://blog.roboforex.com/wp-content/uploads/2020/11/jpy-360×188.jpg 360w, https://blog.roboforex.com/wp-content/uploads/2020/11/jpy-768×401.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure><p>The yen ended up in a sideways channel due to the lack of decisions from the Bank of Japan and tension amid the forthcoming Federal Reserve meeting. So far, consolidation is the main scenario for the <a href="https://roboforex.com/beginners/info/charts/forex/usdjpy/" data-internallinksmanager029f6b8e52c="40" title="USD/JPY">JPY</a>.</p>
<h2>China: impact on risk assets</h2>
<figure><img loading="lazy" decoding="async" width="1200" height="627" src="https://blog.roboforex.com/wp-content/uploads/2020/03/jpy-1200×627.jpg" alt="JChina: impact on risk assets" class="wp-image-3148" srcset="https://blog.roboforex.com/wp-content/uploads/2020/03/jpy.jpg 1200w, https://blog.roboforex.com/wp-content/uploads/2020/03/jpy-360×188.jpg 360w, https://blog.roboforex.com/wp-content/uploads/2020/03/jpy-768×401.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure><p>China is set to release data on the manufacturing PMI in January, which could have risen from 49.0 points recorded earlier to 49.3 points. The more robust the statistics, the better for assets linked to risk.</p>
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