We weren't expecting any major news on FOREX on Monday - a bank holiday in the USA - but the market turned out to be even calmer and more volatility-free than expected.

Zero variation in the Euro-Dollar, 0.15% decline in the Pound Sterling or the Canadian Dollar, the Dollar Index only shifted 0.2% higher (to 102.60) thanks to the Yen's -0.6% fall to 145.8, as traders continued to bet on the BOJ's hyper-accommodating monetary policy, despite inflation exceeding 30%, the highest in 30 years.
In so doing, the BoJ has given a boost to the Japanese stock market, with the Nikkei gaining 2,300pts (over 7%) in a straight line since January 4.

Forex traders are not expecting any major movement in the Dollar this week, as the macro-economic agenda is likely to be calmer in the United States, culminating in retail sales figures for December, which will gauge the health of consumer spending in the US.

The Dollar-Index has remained locked within a 0.5% range (102.1/102.7) since January 3, a complete stagnation rarely seen for 10 days.

A single figure -with no impact- was published mid-morning in Europe: industrial production, seasonally adjusted in October and November 2023, fell by 0.3% in the eurozone and by 0.2% in the EU, according to Eurostat, following declines of 0.7% and 0.5% respectively between September and October.

In the eurozone, production of durable consumer goods fell by 2%, while production of non-durable consumer goods rose by 1.2%.
Over 1 year, the decline flirts with -6.8% in the Eurozone (-5.8% in the EU), which largely explains the contraction in GDP growth anticipated in Q4 in the Eurozone (led by a negative GDP of -0.3% in Germany at the end of 2023).


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