The US dollar appears to be in an oversold condition, trading lower against most currencies. Yesterday's Q4 23 GDP data included December US personal income and consumption figures, but the market is eagerly awaiting the monthly print. The core measure is expected to ease, while the headline rate remains flat.

Disappointing Intel earnings could have contributed to the retreat in Asia Pacific indices today, with India and Australia markets closed. Europe's less tech-sensitive Stoxx 600 is up for the third consecutive session. Meanwhile, the US S&P and NASDAQ may break their six-day advances unless a strong recovery is observed.

Gold is range-bound between approximately $2018 and $2024, slightly lower for the week.
Amid China's warning regarding its ships in the Red Sea, crude oil is a bit heavier after the March WTI contract reached $77.50 yesterday.

Asia Pacific
The BOJ meeting earlier this week boosted confidence in a potential exit from the negative interest rate policy in April. However, today's January Tokyo CPI, which typically runs about 0.2 percentage points above national figures, fell more than expected.

The dollar is trading quietly today in a narrow range below JPY148.10, following yesterday's confinement to about half a yen on either side of Wednesday's settlement near JPY147.50.
The Australian dollar continues to trade poorly, settling near its lows after an unsustainable rally in the past four sessions.

Europe
There were no surprises from the ECB as policy was left on hold, but ECB President Lagarde failed to convince the market that it was too early to discuss rate cuts. The odds of an April move increased to around 80%, up from about 65%.
Next week's highlights include the eurozone Q4 GDP. Lagarde warned of stagnation, and the drop in eurozone rates, coupled with the stronger-than-expected US Q3 GDP, weighed on the euro. The single currency continues to be sold on intraday moves above $1.09.

The Bank of England meeting on February 1 is not expected to bring a change in policy. The swaps market indicates a little better than a 50% chance of a cut in May, fully priced in for June.
Sterling remains in a $1.26-$1.28 range, making a marginal near three-day low today near $1.2675 before recovering slightly above $1.2740.

America 
The world's largest economy expanded by 3.3% at an annualized rate in Q4 23, surpassing expectations. Consumption slowed less than expected (2.8% vs. 3.1%), and various factors, including business investment, government, inventories, and net exports, contributed to the expansion. Strong growth occurred with less inflation.
Next week's US highlights include the FOMC meeting and the January employment report.