As we get closer to this week’s slew of central bank announcements, participants took some risk off the table. Equity markets dropped and the buck saw some inflows as investors sought the safety of the greenback.
Tuesday’s trading session sees several German data releases including inflation, retail sales, and employment data. There will also be a eurozone preliminary GDP release at 10 am. This covers Q4 2022 and is forecast to print at -0.1%.
Markets will likely remain in a volatile state as we approach Wednesday’s announcement from the Fed. The greenback may see some more inflows in the run-up to this major event as participants hedge their bets against a hawkish performance from Fed chairman Powell.
Written by Viv Savani. 7:49am, January 31st 2023
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