This week begins under the shadow of Martin Luther King Jr. Day, meaning U.S. financial markets are closed on Monday (Jan 19). That typically lowers volume early in the week and can lead to subdued price moves until Tuesday. As the week unfolds, focus will shift toward inflation measures in both the euro area and the U.S., growth prints like GDP, and early estimates of business activity. Central bank news and global gatherings such as the World Economic Forum in Davos may also influence sentiment in FX markets, particularly through broad risk appetite and safe-haven flows.
📅 Monday, 19 January 2026
Holiday & Quiet Start
- United States: Martin Luther King Jr. Day – U.S. financial markets are closed, moderating trading volumes and FX volatility.
- Global Forum: The World Economic Forum in Davos begins, with speeches and panel discussions from global leaders that markets may interpret for geopolitical and economic expectations, though no direct data releases.
Asia & Europe Economic Activity
- Japan
- Core Machinery Orders (Nov)
- Industrial Production (Nov, final)
- Tertiary Industry Index (Nov)
- Australia
- TD-MI Inflation Gauge (Dec)
- China
- GDP Growth (Q4)
- Retail Sales (Dec)
- Industrial Production (Dec)
- Fixed Asset Investment (Dec)
- Eurozone
- CPI Preliminary and Core CPI (Dec)
- Canada
- CPI and Median CPI (Dec)
📅 Tuesday, 20 Janauary 2026
U.K. Labour Market
- United Kingdom
- Employment Change (Nov)
- Average Earnings incl. Bonus (3M/Nov)
- Unemployment Rate (Nov)
United States
- Pending Home Sales (Dec)
- Both month-on-month and year-on-year figures.
Market Focus
- With the U.S. reopening for full trading after the holiday, Tuesday typically sees liquidity pick up.
- UK labour statistics may shape expectations for Bank of England policy, which feeds into GBP price action.
- U.S. housing indicators can influence broader risk sentiment and the USD.
📅 Wednesday, 21 January 2026
United Kingdom Inflation & Business Sentiment
- U.K. CPI (Dec)
- Headline and core measures.
- CBI Business Optimism and Industrial Trends (Jan)
Business trend indicators showing early Q1 sentiment.
U.S. Housing & Credit
- MBA 30-Year Mortgage Rate
- U.S. Pending Home Sales continued data release
Japan Trade Data
- Balance of Trade (Dec)
- Exports YoY (Dec)
Market Focus
- UK inflation readings often move GBP pairs, especially if they deviate from expectations.
- Japanese trade data can affect JPY crosses, particularly JPY/USD and JPY/EUR.
- U.S. housing data remains in focus as it reflects domestic economic momentum.
📅 Thursday, 22 Janauary 2026
United States Major Macro Data
- Personal Consumption Expenditures (PCE) Price Index
– Core and headline measures (Nov). This is the Federal Reserve’s preferred inflation gauge and often leads FX market swings in USD. - GDP Final (Q3)
- Personal Income & Personal Spending (Nov)
- Weekly Jobless Claims
Eurozone
- GDP Estimate (Q4)
Early look at euro area growth.
ECB Insights
- Release of Monetary Policy Meeting Accounts
Market attention on nuance that could influence expectations for future ECB action.
Market Focus
- PCE data is one of the most important inflation indicators for the U.S., and stronger results tend to strengthen the USD while weaker prints can soften it.
- Weekly jobless claims provide a snapshot of labor market strength, another key driver for broad sentiment.
📅Friday, 23 Janauary 2026
Early Business Activity
- Flash Manufacturing PMI (Jan)
- Flash Services PMI (Jan)
Early estimates of business activity which can influence risk appetite and global equities.
U.S. Consumer Confidence
- University of Michigan Consumer Sentiment
Final reading for January, reflecting household confidence and inflation expectations, often tracked by currency traders.
Japan Central Bank Statement
- Bank of Japan Policy Decision
Markets watch for guidance from the BoJ, particularly regarding interest rates and yield curve control. A stable or changed stance could lead to notable JPY volatility.
Market Focus
- PMIs provide a pulse on manufacturing and services sectors and can sway risk-sensitive currencies like AUD, NZD, and EUR.
- Consumer sentiment figures often steer USD moves late in the week.
Themes to Watch This Week
Inflation vs Growth: Eurozone CPI data, U.S. PCE, and GDP figures combine to show inflation pressures and growth trajectory, feeding expectations for central bank actions.
Labor Market Strength: U.S. weekly claims and UK labour stats help shape employment narratives, with implications for currency valuations.
Risk Sentiment & Business Activity: Early PMIs and consumer confidence shape risk flows; stronger readings can lift risk currencies (AUD, NZD) while softer ones may bolster safe havens (USD, JPY).
Global Dialogue: Davos commentary often sets broader investor tone around geopolitical risk, trade policy, and optimism or caution in markets.
