The highlight of the week is the U.S. Federal Reserve’s two-day policy meeting (January 27–28), where markets expect no change in the policy rate but keen focus on the accompanying statement and forward guidance. Other themes include key consumer and business confidence surveys, inflation and GDP data from major economies, and holiday-reduced liquidity early in the week due to regional public holidays. Quiet early trading could give way to more eventful sessions as the week progresses.
📅 Monday, 26 January 2026
Holiday Observances and Liquidity Notes
- Markets in India will be affected by Republic Day, potentially limiting local trading activity.
- Australia marks Australia Day, another holiday that could reduce activity in the region.
United States
- Durable Goods Orders (November): A key early indicator of manufacturing activity that can influence USD sentiment.
- Core Durable Goods Orders: Focus on business investment trends.
- Treasury 2-Year Note Auction: Short-term rates influence and USD yield curves.
Latin America
- Brazil: BCB Focus Market Readout and Foreign Direct Investment figures could provide insight into capital flows.
- Mexico: Unemployment Rate releases may influence peso dynamics.
European Data
- Spanish Producer Price Index (PPI): A gauge of inflation pressures.
- German Ifo Business Climate Index: Business optimism indicator.
- Speeches from European policymakers could offer cues on future policy outlook.
Asia
- Japan: Corporate Services Price Index may signal inflation trends.
📅 Tuesday, 27 Janauary 2026
Federal Reserve Policy Meeting Begins (U.S.)
- The first day of the two-day policy discussion may see market positioning ahead of the official decision.
United States
- ADP Employment Change: Early read on private payrolls that can sway risk appetite.
- Consumer Confidence (Conference Board): Sentiment measure affecting markets and USD flows.
- Treasury 5-Year Note Auction: Yields may influence dollar index direction.
Canada
- BoC Rate Statement: Bank of Canada will set or reaffirm monetary policy, a key event for CAD markets.
Latin America
- Brazil: Consumer Confidence and Mid-Month CPI figures provide signals on inflation and consumption.
- Mexico: Trade Balance data adds insight into external demand dynamics.
Europe
- France Consumer Confidence: A sentiment check.
- Spanish Unemployment Rate: Labor market health.
- German 2-Year Bond Auction: European yields and euro positioning.
Asia & Pacific
- Japan BoJ Core CPI: Inflation fundamentals.
- Australia CPI (Quarterly): Important inflation gauge ahead of RBA’s future decisions.
📅 Wednesday, 28 January 2026
Federal Reserve Policy Decision (U.S.)
- The Fed will announce its policy decision and likely hold the federal funds target range unchanged.
- Markets will focus intensely on the Fed’s outlook statement and commentary for clues on future rate expectations and the economic stance.
Canada
- Market reaction may linger from the BoC statement if activity spills over.
Asia
- Bank of Japan meeting minutes could offer insight into future policy direction.
Australia
- Additional Australian inflation and business confidence data are expected, offering a picture of pricing trends and private sector sentiment.
📅 Thursday, 29 Janauary 2026
United States
- Continuation of data releases that matter for FX:
- Initial Jobless Claims: Weekly labor market snapshot.
- Factory Orders & Wholesale Inventories: Indicators of industrial demand and output that can affect USD sentiment.
Japan
- Tokyo CPI and Other Domestic Indicators (employment, industrial production) can influence JPY flows.
Europe
- Eurozone and country-level indicators from Germany and other members continue to filter through analyst screens.
Australia & New Zealand
- Business confidence and producer pricing figures update views on local demand and pricing pressures.
📅Friday, 30 Janauary 2026
United States
- Producer Price Index (PPI) and Core PPI (December): A significant inflation indicator that often sets the tone for currency expectations and U.S. interest rate pricing.
- Chicago PMI (January): A sentiment snapshot of business activity.
Eurozone
- GDP Preliminary (Q4): A key growth indicator that could influence euro positioning.
- Eurozone Unemployment Rate: Labor health outlook.
Spain
- Spanish CPI: Inflation trend details.
Canada
- GDP (MoM): Economic expansion insights.
China
- PMI suite (Manufacturing, Non-Manufacturing, Composite): Provides the market with a final view of business activity as the week ends.
Latin America
- Brazil: Inflation and unemployment data track domestic economic trends.
- Mexico: GDP and fiscal balance numbers frame growth and public finances.
- Colombia: Interest rate decision and employment figures offer perspectives on monetary policy and labor health.
- Chile: Retail sales may indicate consumer demand strength.
📌 Week in Focus
Federal Reserve Policy Decision & Outlook – The centerpiece of the week, steering major currency pairs and risk sentiment.
Inflation Data Across Regions – CPI and PPI prints in the U.S., Europe, Japan, and Australia help shape expectations for monetary settings.
Confidence and Business Sentiment Measures – Consumer and business confidence indices can move markets by hinting at future spending and growth.
Growth Figures (GDP) – Preliminary GDP readings help define economic momentum across major economies.
