The forex market began the week on a subdued note, with mild risk-off sentiment setting the tone. China’s latest economic data painted a bleak picture, with retail sales significantly underperforming expectations and fixed asset investment experiencing a deeper decline. While industrial production growth met forecasts, it failed to offset concerns about the broader economic slowdown.
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Yen weakened across the board today in an otherwise consolidative market , as traders increasingly anticipate that BoJ will hold steady on monetary policy at its upcoming this week. BoJ policymakers appear to see no urgency in extending the tightening cycle this month, preferring instead to wait for January’s updated economic projections before deciding on
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UK GDP came in weaker than expected -0.1% for the month versus +0.1% estimate. Construction output, industrial production, manufacturing production was also weaker and the trade balance had a larger deficit. The declines sent the GBP lower but buyers came in near technical support targets and the price has since rebounded off lows. The EURUSD
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