FX Updates
Stable Market Minute - 12th January 2026: Navigating a Volatile Week Ahead
Catch up on all the economic news you need to know in the time it takes to count from 1 to 60.
Watch Alistair's video update here
Last week, the financial markets saw significant movements, with the Dollar Index achieving five consecutive daily gains, inching closer to the 99.13 mark. Despite US non-farm payroll data missing expectations, the drop in unemployment and inflation concerns captured market attention, hinting at a complex economic landscape.
As of this morning, GBP/USD is trading at 1.3460, while GBP/EUR stands at 1.1514, and EUR/USD is just below 1.1700. On Friday, gold experienced a robust rally, climbing 3% to trade just under 4,600. Meanwhile, crude oil surged nearly 7%, reflecting heightened market activity.
This week promises to be busy, with several critical economic data releases and events. Today, all eyes will be on Jerome Powell's speech scheduled for 1:00 PM. On Tuesday, US inflation data will be released, followed by US retail sales figures on Wednesday. Finally, Friday will bring the release of Chinese GDP data, which could further impact global market dynamics.
Tensions are high as the Trump administration considers pressing criminal charges against Jerome Powell, adding another layer of uncertainty. Additionally, rising geopolitical tensions, particularly involving Iran and Greenland, are expected to contribute to market volatility.