In a week marked by varied economic indicators, global markets experienced a mix of bullish and cautious sentiments. The Federal Reserve has signaled the need for evidence of economic weakness and subdued inflation before further policy loosening, following a series of 100 basis points rate cuts. Meanwhile, the preliminary January PMI data from the UK boosted the Pound Sterling, while President Trump's policies continued to be perceived as conducive to growth. Additionally, easing fears over aggressive U.S. tariffs on China led to a rise in gold prices, with XAU/USD trading higher.
In Europe, currencies from Central and Eastern Europe (CEE) strengthened significantly against the euro. EUR/USD gathered momentum, trading near 1.0500 on Friday, supported by positive PMI data from Germany and the Eurozone, which indicated expansion in business activities. The Polish zloty saw support due to the central bank's hawkish stance and a high-interest rate differential.
The consumer confidence indicator for the European Union remained stable in January 2025 at -13.3 points, while the Eurozone's indicator edged up slightly by 0.3 points to -14.2. These figures suggest a cautious yet slightly improved consumer sentiment across the region.
The currency markets also saw notable movements, with GBP/USD extending its weekly uptrend, reaching a two-week high above 1.2400 on Friday. Currencies such as EURCZK at 25.09, EURHUF below 410, and EURPLN at 4.21 marked significant lows, reflecting the strengthening of CEE currencies. Long-term yields across the region have decreased this week, adding another layer of complexity to the financial landscape.
The Dogelon Mars (ELON) cryptocurrency price continued its robust rally on Friday, gaining more than 18% over the week. Gold maintained its daily gains, trading above $2,770 and nearing its record high of $2,790 set in late October.