ECB extends temporary euro liquidity lines to March 2022
Much like the dollar swap lines, these are mainly to ensure that non-euro area central banks have sufficient euro liquidity as the virus crisis continues to play out.

Not much actually
The BOE announces its first policy decision of the year at 1200 GMT and is likely to be more of a non-event, though there are some things to watch out for.

Latest data released by Eurostat – 4 February 2021

Silver eases to test the lows for the week
Precious metals aren’t getting much love today as the dollar holds firmer across the board and is now threatening to break higher as the 1.2000 level in EUR/USD looks to be in danger as sellers (dollar buyer) target a daily break of that.

Latest data from the Mortgage Bankers Association for the week ending 29 January 2021
–  -4.1%
– Market index 981.1 vs 907.6 prior
– Refinancing index 4,746.2 vs 4,261.5 prior
The jump in the past week owes much to a spike in refinancing activity but purchases in general also continue to hold up. That continues to reflect stronger housing

Mizuho outlines the conditions for USD/JPY to rise
The firm says that the market isn’t seeing a significant yen weakening trend at the moment but will feel more comfortable about USD/JPY going back to the 105-110 range if 10-year Treasury yields climb more significantly from hereon.

Is the silver trade looking to switch back up again?
SLV saw a record amount of daily inflows worth nearly $1.6 billion yesterday (h/t @ daniburgz) despite the 9% drop in silver prices yesterday. That might be a sign that there is still strong appetite for silver despite the retreat after hitting $30 earlier in the

Latest data released by Eurostat – 3 February 2021
As mentioned , this shouldn’t change a thing in terms of the ECB outlook as the jump in inflation owes to a host of special circumstances to start the year. In any case, expect more volatility in the numbers to follow in the coming months as well.

Latest data released by Eurostat – 3 February 2021

HSBC argues to look past the RBA surprise decision today
The firm says that while it was a surprise that the RBA announced a QE extension today, it simply „mirrors similar commitments by other G-10 central banks, including the Fed, and should therefore not be a significant long-term driver of the currency“.