<p style=““ class=“text-align-justify“>Here’s a snapshot of the major currencies space (which is not much different to what it was roughly three hours ago <a target=“_blank“ href=“https://www.forexlive.com/news/light-changes-among-major-currencies-to-start-the-session-20230126/“ target=“_blank“ rel=“follow“>here</a>):</p><p style=““ class=“text-align-justify“>There’s just a general lack of interest in markets for the time being, even with equities holding slightly firmer on the day. European indices are still maintaining slight gains while US futures are also a little higher currently. S&P 500 futures are up 0.2% while Nasdaq futures are up 0.6%, buoyed by Tesla’s record revenue and earnings beat.</p><p style=““ class=“text-align-justify“>But perhaps market players are waiting on key US data later, with other factors also in consideration:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/heads-up-watch-out-for-the-us-pce-data-tomorrow-20230126/“ target=“_blank“ rel=“follow“>Heads up: Watch out for the US PCE data tomorrow</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/month-end-rebalancing-should-see-the-us-dollar-underperform-morgan-stanley-20230126/“ target=“_blank“ rel=“follow“>Month-end rebalancing should see the US dollar underperform – Morgan Stanley</a></li></ul>

This article was written by Justin Low at www.forexlive.com.

<ul><li>Prior 11</li></ul><p style=““ class=“text-align-justify“>UK retail sales volumes fall at its fastest pace since April with expected retail sales for February seen at -15 (vs -17 in January). That continues to underscore a weaker trend in consumption activity as the cost-of-living crisis intensifies across the country.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>Morgan Stanley notes that their month-end rebalancing model expects the dollar to underperform this month, with their signal suggesting weakness in the greenback against all G10 currencies except the Norwegian Krone. That will add some weight to an already struggling dollar since the turn of the year.</p><p style=““ class=“text-align-justify“>Just something to take note of we approach the final few trading days of January.</p>

This article was written by Justin Low at www.forexlive.com.

<ul><li>Inflation risks are becoming more pronounced</li><li style=““ class=“text-align-justify“>If significant risks materialise, BOJ must be ready to withdraw stimulus more strongly – such as raising short-term rates</li><li style=““ class=“text-align-justify“>Policy proposal calls for BOJ to allow bond yields to move more flexibly, following annual consultation with Japan</li><li style=““ class=“text-align-justify“>Possible options include widening yield band, raising yield target, targeting shorter-term yields</li></ul><p style=““ class=“text-align-justify“>The pressure is continuing to stay on the Japanese central bank here despite their policy decision last week. It seems like the chorus that is asking for change is getting louder and markets are also listening. 10-year JGB yields are back up to 0.49% today, just a whisker away from touching the <a target=“_blank“ href=“https://www.forexlive.com/terms/b/boj/“ class=“terms__main-term“ id=“c1f60108-4283-4827-911e-95f01607c737″ target=“_blank“>BOJ</a> ceiling of 0.50% again.</p>

This article was written by Justin Low at www.forexlive.com.

<p>Market picture</p><p>Bitcoin
spent most of Wednesday in a shallow corrective mode, pulling back to $22.3K.
However, with the start of active trading in New York, optimism returned to the
equity markets, pushing BTC to $23.7K by the end of the regular session. We saw
renewed pressure and a pullback to the $23.0K level on Thursday morning.</p><p>Yesterday’s
decline can be seen as a technical correction from the momentum from January
19th, paving the way to $25.0K. However, it is more likely that the renewal of
the six-month highs was a false breakout, as trading has been predominantly in
the $22.7-23.3K range since Saturday, reflecting the continued profit-taking.</p><p>The
cryptocurrency’s market cap has returned to the $1.05 billion level, where it
has spent most of its time since January 21st.</p><p>News background</p><p>Twitter
analyst Trader_J called Bitcoin’s continued rise a manipulation. He speculates
that most of the BTC in the current rally has been bought using BUSD, Binance
stablecoin.</p><p>South Korean
authorities have issued an arrest warrant for the head of the country’s
second-largest cryptocurrency exchange, Bithumb, who is accused of manipulating
the share prices of the exchange’s subsidiaries and embezzlement.</p><p>According to
SEC Commissioner Hester Pearce, participants in the cryptocurrency community
and regulators should learn from the problems faced by the crypto industry in
2022. However, she noted that the challenges faced could be beneficial in the
future.</p><p>Attorney
John Deaton, who represents XRP owners, said a final hearing on the LBRY platform
would occur in New Hampshire on 30 January. The event, he said, is significant
for the industry: a final victory for the SEC would mean that all secondary
market transactions in digital assets could be deemed illegal in the US.</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ rel=“follow“ target=“_blank“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

This article was written by ForexLive at www.forexlive.com.