Latest data released by Eurostat – 20 January 2021
The preliminary report can be found . No change to the initial estimates and this reaffirms that core inflation in the euro area keeps at a record low towards the end of 2020.

Gold has a slow start to 2021
Usually gold has a great start to the year on Chinese gold buying for the Lunar New year celebrations. In the last 10 years gold has risen eight years out of ten in January. The largest gain was in 2012 with a strong 9.14% rise. The biggest loss was

WSJ reports on the matter, citing a review of the text of Yellen’s remarks to the Senate Finance Committee
The also adds that Yellen is to affirm the US‘ commitment to market-determined exchange rates, making it clear that they are not seeking a weaker dollar for competitive advantage, according to officials familiar with her hearing

Gold continues to be caught in a battle around key technical levels
Gold is trading back towards its 100-hour moving average (red line) as buyers wrestle back some near-term control. However, that doesn’t mean all too much considering that price action appears to be stuck in a consolidation phase between $1,830 and $1,860.

The euro advances after the German ZEW survey data shows that investor sentiment continues to override lockdown pessimism
key technical support levels
Of note, the push higher during the session has also seen buyers take out the near-term trendline resistance in the latest swing move lower and now contesting a potential break of the 23.6 retracement level

Does the early reflation narrative have more legs to run to start the year?
The Georgia runoffs, Fed talk, and Biden’s stimulus plan were key components to get the market to start the new year but have we finally run out of fuel on that front – at least for now?

Latest data released by ZEW – 19 January 2021
This reflects the more optimistic investor sentiment as well but we’ll see how well this will hold up in light of restrictions set to be prolonged further to April in all likelihood.

Mizuho says that the yen gains today are mostly to do with positioning with the US on holiday
That was also pretty much the case on Friday as the market continues to take cues from then in trading today amid the long weekend in the US.

US markets will be closed in observance of Martin Luther King Day
The lack of any „guidance“ by US traders and Wall Street means that the market will have little else to work with besides the clues that we got towards the end of trading last week.

Gold woke up on the wrong side of the bed following the weekend but is managing to hold up for the time being
Elsewhere, silver also saw a 2% slump to near $24 reversed to hit $25.15 before easing back just under the $25 level on the session.