There aren’t any major expiries to take note of on the day, with the full list seen below.
Trading sentiment continues to revolve around the same factors from Friday last week. The Japanese yen is in its own world, with traders needing to deal with intervention risks bordering on the extreme now. That especially after the suspected ‘rate check’ from Tokyo at the end of last week.
As a reminder, previous episodes in July 2024 and September 2022 did result in actual intervention after. So, there’s certainly an element of danger and USD/JPY longs are in a race to the exits now in trying to cover their positions.
For other dollar pairs, it’s a rather straightforward driver with it being the greenback itself. The dollar is struggling across the board as the debasement trade continues to run alongside the continued de-dollarisation narrative in general. The erratic and uncertain US administrative policies to start the year all but serves as a reminder to that.
And as such, that’s sending the precious metals trade into overdrive as well. Today, we’re seeing gold soar above $5,000 quite comfortably and silver also cruising past the $100 mark without any hesitation or profit-taking. Just be wary though that these moves are really running parabolic and while I am an advocate for precious metals, to imagine this kind of start to the year is really something else. Absolutely bewildering.
So, that leaves us to where we are now to start the new week. But later on in the coming sessions, just be wary of month-end flows as well with this being the final trading week of January.
For more information on how to use this data, you may refer to this post here.
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