Market sentiment was positive yesterday, as news of a possible resolution to the Russia-Ukraine conflict boosted risk appetite. Investors responded optimistically, driving gains across major market indices on both sides of the Atlantic.
Adding to the upbeat mood, strong business results updates further bolstered confidence. The ‘risk-on’ sentiment was reflected in market movements, with investors willing to take on more risk in response to these developments.
During yesterday’s European session, most major currency pairs traded within tight ranges. However, the euro faced pressure following weaker-than-expected Eurozone industrial production data for December, weighing on the currency.
Meanwhile, the US dollar saw modest initial gains after rumours emerged that the Trump administration was considering a plan to impose reciprocal tariffs on its trading partners. These speculations contributed to slight volatility in dollar trading.
Looking ahead, today’s key economic release is the second reading of the Eurozone’s Q4 GDP. No revisions are expected to the preliminary 0.0% q/q estimate. In the US, market participants will be watching January’s retail sales data, forecasted at -0.1% m/m, alongside industrial production figures, projected at 0.3% m/m.
For businesses navigating these market movements, staying informed is crucial. If you’d like expert insights on how these trends may impact your business or how to capitalise on market volatility, reach out to our specialists today.