The last week of January is full of company Earning Releases and Central Bank meetings. Major companies like Apple, McDonald’s, Facebook, Amazon, Deutsche Bank and many more are due to report their end of year earnings throughout this week. On the other hand, starting with Hungary on Tuesday and finishing with Russia on Friday, six major Central Banks are releasing their first rate decisions for 2016.
The US Dollar started the week slightly lower but is keeping its ground overall as investors are eyeing the FOMC statement on Wednesday looking for clues on how the global economy is really performing. Against the Japanese Yen it has been trading around 118.6 staying close to Friday’s two week high, while the Euro was last seen around 1.0804. The Federal Reserve is expected to maintain its rate at 0.50%, as is the Reserve Bank of New Zealand whose announcement will follow just an hour later on Wednesday.
Oil is extending its gains early on Monday after gaining more than 10% on Friday; one of its biggest gains in history, boosted by a huge snowstorm covering the East Coast of the US thus spiking its demand. Crude Oil reached a high of $32.55 while Brent Oil hit $32.41. On the contrary, Gold has been trading just below $1100, close to its one and a half week high, waiting to see the equities reaction and whether it will need to come in as a safe-haven again.
Coming up on Monday, the German Ifo Business Climate data due at 09:00 GMT and ECB’s President Draghi will speak at 18:00 GMT in Frankfurt.