By Lachlan Meakin

Major US, European and Australian Indices made modest gains last week, despite a Friday sell off on Wall St. Traders will have no shortage of news to digest this week, with the Federal Open Market Committee’s January policy meeting, major tech company earnings, US GDP figures and Australian CPI.

Equity Markets

US equity traders will have a slew of big name Tech and blue chip companies reporting earnings this week, which will give a good indication of US economic health. With the FOMC announcement and GDP also being reported this week US equity and Index traders will be busy.

European markets are quiet on the news front and will be likely led by their counterparts on Wall St.

In the shortened trading week on Australian Markets we have the important CPI figures released 11:30 am EAST on Wednesday which will give an indication of any heat being put into inflation from the recent COVID stimulus measures undertaken by the Federal Government.

FX Markets

The US dollar index closed lower on the week for the first time in 2021, the losses however were orderly with this week’s moves likely to be driven by the US economic calendar.

• A push by the Administration for the $1.9 Trillion USD COVID relief package to get through Congress and The Senate
• Thursdays FOMC statement
• Fridays GDP figures

SOURCE: GO MT4

AUDUSD

After hitting 2 ½ year highs against the USD in recent weeks the Aussie dollar has consolidated but shown strength in holding the 0.77 level where support has been found.

This week’s CPI figures will be an important indicator of inflation and possible future interest rate moves by the RBA.

SOURCE: GO MT4

Commodities – Oil

US Crude Oil dropped back last week on higher than expected oil inventories, crude oil inventories for the week ended January 15 rose by 4.4 million barrels when a shortage of 1.2 Million barrels was expected. This week’s Crude inventory figure will be released on Wednesday night and could dictate if the Crude price can hold these recent highs where prices have stalled.

Lachlan Meakin

Tuesday, 26 January 2021  Indicative Index Dividends Dividends are in Points
ASX200	WS30	US500	US2000	NDX100	CAC40	STOXX50
0	0	0.045	0.001	0	0	0
ESP35	ITA40	FTSE100	DAX30	HK50	JP225	INDIA50
0	0	0	0	0	0	0

Disclaimer:  The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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