Can we carry over last weekend's risk-on sentiment!? Pay attention to remarks from key figures! ~ Highlights for January 28 and the event schedule ~
Last weekend, risk-on sentiment due to the lifting of the government shutdown, consideration of ending the balance sheet, and a stable upward trend in stock prices led to a substantial decline in the dollar, yen, and franc. As for this week, with the FOMC approaching, all eyes are on how the positive factors from last week will be digested.
Before we know it, this week is the last week of January. End-of-month factors are also likely to emerge.
◎ Today's Points of Focus
1) Digesting the Weekend
Over the weekend, information emerged that the Fed is considering an early end to balance sheet reduction. Also, there were reports of an agreement between the Democratic Party and President Trump on the budget, which would end the government shutdown. Regarding the budget, it will be a temporary budget, and if money for wall construction at the Mexico border does not advance by mid-February, another potential government shutdown could be indicated. Both the balance sheet reduction and the government shutdown end are likely to react positively for the time being, but we should watch how things progress going forward.
2) UK Parliament
Re-vote is scheduled for the 29th (early morning on the 30th Japan time), and discussions on the withdrawal bill continue. There are many opinions and rumors about the withdrawal bill, but it seems they are trying to avoid a no-deal Brexit. In addition to the withdrawal bill, there are various expectations about the withdrawal deadline. A plan to leave on March 29, and a plan to delay. Moreover, if delayed, does the transition period also extend!? There are still too many unclear points.
3) Notable Speeches
Today there are many scheduled speeches by key figures. In particular, speeches by European and UK leaders amid Brexit volatility are expected to continue. Attention should be paid to statements from Draghi, Carney, Broadbent, and Ramsden.
Personally, since I hold a short EUR/GBP, depending on the content of the speeches I may need to rethink my strategy.
EUR/GBP Short strategy is below ↓↓↓
ECB Governing Council EUR/GBP Selling Strategy! ~ January 24 Strategy ~
◎ Today's Economic Calendar
January 28 (Monday)
08:50 JPYBank of Japan Monetary Policy Meeting Minutes
17:45 EUR President of the Austrian Central Bank, Nowotny, Speech
18:00 EUR Money Supply
23:00 EURDraghi, President of the ECB, Speech
23:30 GBPCarney, Governor; Broadbent, Deputy Governor; Ramsden, Deputy Governor Speech
January 29 (Tuesday)
UK Parliament, Alternative Plan Vote
06:45 NZD Trade Balance
09:30 AUD NAB Business Confidence
◎ Weekly Schedule
