Incorporate the US-China agreement content for the day! “January 16 Highlights and Event Schedule”

Yesterday's US-China agreement signing provided a tailwind for US stock prices, but had little impact on the foreign exchange market.

Today, it looks like the Tokyo, Asian, and European markets will incorporate the agreement's contents.

Additionally, the Swiss franc is strengthening.

This is due to the United States adding Switzerland to the FX monitoring list, which Switzerland denied intervening.

Switzerland dislikes a strong franc against the euro, but the franc is nearing the level seen before the 2017 French presidential election.

Whether Switzerland will intervene, implement additional easing, or do nothing, market attention is intensifying.

◎ Today's Highlights

1) ECB Governing Council Minutes

The December ECB Governing Council minutes will be released.

President Draghi implemented ease measures last, and the policy has been continued by President Lagarde without changes.

When Draghi introduced additional easing, there were many opposing members; the December meeting will be watched closely to see how it unfolds.

Also, attention is on whether Europe is at the bottom of its downturn and beginning to recover.

After the minutes are released, Lagarde's remarks are scheduled for 3:00 the next day as well.

This is also something to watch closely, as above.

2) Turkish Policy Rate Announcement

The Turkish lira, which had been unstable due to Middle East risk, is regaining stability.

The central bank of Turkey is expected to cut rates by 0.5%.

If the cut exceeds expectations, there is a risk of further lira selling, so be cautious; given past performance, there is a possibility of a larger-than-expected cut.

President Erdoğan has stated he would cut rates to single digits, so pressure to hasten the cut is not unreasonable.

◎ Today's Event Schedule

Thursday, January 16

16:00 EUR Germany HICP (Consumer Prices Index)

20:00 TRY Turkish Policy Rate Announcement

21:30 EUR ECB Governing Council Minutes (for December 12)

22:30 USD US Retail Sales / Philadelphia Fed President Speech

Friday, January 17

00:00 USD Bowman FOMC Member Speech

03:00 EUR Lagarde ECB President Speech

06:30 NZD NZ Manufacturing PMI