Weekly forex futures positioning data from the CFTC
– EUR long 156K vs 143K long last week. Long increased by 13K
– GBP long 13K vs 4K long last week. Longs increased by 9K

GBP narrowly beats out JPY and USD
It was a tight race at the top of the FX charts this week that grew much tighter after today’s drop in cable.
Yet sterling has managed to hang onto its title, at least so far. It’s a few pips higher on the week versus the yen and US dollar.

The EURUSD has traded most of the week below the close from last week
The EURUSD closed last week week at 1.22159. The price initially fell on Monday to a low of 1.21315 and formed a bottom between that level and 1.21364 on Tuesday before moving higher, and retesting the close from last week. The high for the week

The slight hints of risk aversion are still at play for now
That is keeping the likes of the dollar, franc and yen in particular bid during European morning trade. USD/JPY is now retreating to fresh session lows of 103.62 now as the retreat following a test of key trendline resistance levels continues to play out:

Gold will continue to track real yields for the time being
Precious metals got a slight boost from Fed chair Powell yesterday, after he said that the central bank is not looking to ease policy any time soon – not until troubling signs of inflation begin to surface at least, which is a long ways to

Latest data released by Eurostat – 15 January 2021
– €25.9 billion; revised to €25.2 billion
On the month, exports grew by 2.0% while imports grew by 2.3%, leading to the marginally tighter trade surplus in November. Overall, trade conditions are still gradually picking up towards the end of last year so that is a positive

The new rules will come into force on 18 January
Reuters reports, citing a French government document showing that non-EU travellers will not be able to use antigen tests for the coronavirus – one that can deliver results in minutes – to get into the country upon testing negative.

What are some other risk factors to be mindful of right now?
Powell vs Biden debate
Italian politics
Another government reshuffle is on the cards in Italy and there are only a few options left, being a new majority being formed, a technical government takes over, or a very distinct possibility of early elections.

Comments by German economy minister, Peter Altmaier
– Government will continue strong response to pandemic
– But measures can only be temporary
– We will do everything in our means to guarantee this will be the a recovery year
Given how the virus restrictions are still likely to stay in place throughout Q1 and potentially until April, that does

Powell will be participating in a Princeton Economics‘ webinar
If you’re wondering what will be discussed, the event agenda highlights that Powell is slated to touch on an array of topics as per the following: