Greece Consumer Price Index – Harmonized (YoY) up to 2.9% in December from previous 2.8% 🔗 Source 💡 DMK Insight Greece’s CPI rising to 2.9% is a subtle but significant shift that traders need to watch closely. This uptick from 2.8% could indicate a trend of increasing inflationary pressure, which might prompt the European Central Bank to reconsider its monetary policy stance. For forex traders, this could mean volatility in the Euro as market participants adjust their expectations around interest rates. If inflation continues to rise, we could see the Euro strengthen against currencies like the USD, especially if the Fed maintains its current policy. Keep an eye on the 1.10 level for EUR/USD; a break above could signal a bullish trend. However, it’s worth noting that inflation data can be misleading. If the increase is driven by temporary factors, the market might overreact, leading to a potential pullback. Watch for any comments from ECB officials in the coming days, as they could provide insights on future rate hikes or adjustments. The next few weeks will be crucial for gauging whether this CPI increase is a one-off or part of a larger trend. 📮 Takeaway Monitor the EUR/USD around the 1.10 level; a sustained break above could indicate a bullish trend as inflation pressures mount.

Spain 6-Month Letras Auction increased to 1.981% from previous 1.931% 🔗 Source 💡 DMK Insight Spain’s 6-month letras auction yield rising to 1.981% signals a tightening bond market, and here’s why that matters: Higher yields indicate increased borrowing costs, which can ripple through the eurozone, impacting everything from corporate financing to consumer loans. For traders, this uptick might suggest a shift in sentiment towards risk-off assets, particularly if investors start flocking to safer havens like German bunds or U.S. Treasuries. Keep an eye on the broader bond market trends; if yields continue to rise, it could pressure equities and riskier assets, leading to potential volatility in forex pairs involving the euro. Also, consider that this yield increase could be a precursor to tighter monetary policy from the ECB, which might influence the euro’s strength against the dollar. Watch for key technical levels on the EUR/USD; a break below recent support could signal further downside. As we approach the next ECB meeting, traders should monitor economic indicators closely, especially inflation data, as it could dictate the central bank’s next moves. 📮 Takeaway Watch for further yield increases in Spain’s letras; a sustained rise could pressure euro pairs and indicate a shift towards risk aversion.

The Indian Rupee (INR) trades lower against the US Dollar (USD) on Tuesday at around 90.50, ahead of trade talks between the United States (US) and India during the day. 🔗 Source 💡 DMK Insight The INR’s dip to around 90.50 against the USD is a key indicator ahead of crucial trade talks today. With the US-India trade discussions looming, traders should be wary of volatility. A weaker INR could signal concerns over trade imbalances or economic growth, which might impact investor sentiment. If the talks yield positive outcomes, we could see a rebound in the INR, potentially targeting resistance levels around 90.00. Conversely, if negotiations falter, the INR might test support levels below 90.50, leading to further depreciation. Keep an eye on market reactions post-talks, as they could ripple through related assets like Indian equities and commodities. Watch for any statements from officials that might hint at the talks’ direction, as these could serve as immediate catalysts for price movement. 📮 Takeaway Watch the INR closely; a break below 90.50 could signal deeper weakness, while positive trade talk outcomes might push it back towards 90.00.

Spain 12-Month Letras Auction: 2.032% vs 1.99% 🔗 Source 💡 DMK Insight Spain’s latest 12-month Letras auction saw yields rise to 2.032%, a notable increase from 1.99%. This uptick in yields signals a shift in investor sentiment, likely reflecting growing concerns over inflation and potential interest rate hikes. For traders, this could mean a tighter monetary environment ahead, which often leads to volatility in both forex and bond markets. If you’re holding positions in euro-denominated assets, keep an eye on how this affects the EUR/USD pair, especially if the euro strengthens against the dollar as investors seek higher yields. On the flip side, rising yields can also pressure equities, particularly those with high debt levels. Watch for any significant moves in the stock market as investors reassess their risk exposure. Key levels to monitor include the 1.10 mark for EUR/USD, which could serve as a pivot point in the coming days. Stay alert for any commentary from the ECB that might further influence market dynamics. 📮 Takeaway Watch the EUR/USD closely; a break above 1.10 could signal further euro strength as yields rise.

The Pound Sterling (GBP) holds onto Monday’s gains around 1.3470 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair trades firmly ahead of the United States (US) Consumer Price Index (CPI) data for December, which will be published at 13:30 GMT. 🔗 Source 💡 DMK Insight GBP/USD is holding steady at 1.3470, but the upcoming CPI data could shake things up. With the US CPI report looming, traders need to be on high alert. If inflation comes in hotter than expected, it could trigger a stronger USD as the Fed may feel pressured to maintain or increase interest rates. Conversely, a softer CPI could bolster the GBP, potentially pushing the pair higher. Watch for key support around 1.3400 and resistance near 1.3500. These levels could dictate short-term trading strategies, especially for day traders looking to capitalize on volatility. Here’s the flip side: if the CPI data is in line with expectations, we might see a muted reaction, leaving GBP/USD to consolidate. Keep an eye on market sentiment and positioning ahead of the release, as speculative moves could create opportunities for swing traders. The real story is how the market reacts post-CPI, so be ready to adjust your positions accordingly. 📮 Takeaway Watch the 1.3400 support and 1.3500 resistance levels in GBP/USD ahead of the CPI data release at 13:30 GMT.

EUR/JPY trades around 185.50 on Tuesday at the time of writing, up 0.50% on the day, extending its upward move for a third consecutive session, hitting a new multi-year high at 185.54 earlier in the day. 🔗 Source 💡 DMK Insight EUR/JPY’s climb to 185.54 signals strong bullish momentum, but here’s why caution is key: The pair’s recent performance, up 0.50% and marking a multi-year high, reflects a broader trend of euro strength against the yen, likely fueled by diverging monetary policies. With the ECB maintaining a hawkish stance while the BoJ remains accommodative, traders should monitor this divergence closely. However, the rapid ascent raises questions about sustainability; overbought conditions could trigger profit-taking. Watch for potential resistance around 186.00, which could be a pivotal level for short-term traders. If the pair retraces, a pullback to 185.00 might provide a buying opportunity for those looking to ride the trend. On the flip side, if the yen strengthens unexpectedly due to geopolitical tensions or shifts in market sentiment, it could reverse this bullish trend. Keep an eye on economic indicators from both the Eurozone and Japan, as they could influence the next moves. The key takeaway is to stay alert for volatility around these levels, especially with the daily RSI approaching overbought territory. 📮 Takeaway Watch for EUR/JPY at 186.00 as a potential resistance level; a pullback to 185.00 could offer a buying opportunity.

The US Bureau of Labor Statistics (BLS) will publish December’s Consumer Price Index (CPI) report on Tuesday at 13:30 GMT. The report is expected to show that prices remained broadly stable in the last month of 2025. 🔗 Source 💡 DMK Insight The upcoming CPI report is crucial for traders, especially with inflation expectations hanging in the balance. If December’s CPI shows stability, it could reinforce the Fed’s current stance on interest rates, impacting both forex and crypto markets. Traders should watch for any surprises that could shift sentiment. A stable CPI might keep the dollar strong, affecting pairs like EUR/USD and GBP/USD. Conversely, if inflation ticks up unexpectedly, we could see volatility spike, particularly in risk assets like Bitcoin. Pay attention to the 13:30 GMT release; it could set the tone for the rest of the week. Remember, the market often reacts sharply to these reports, so be ready for potential swings. 📮 Takeaway Watch the December CPI report at 13:30 GMT; stability could strengthen the dollar, while surprises may trigger volatility in forex and crypto markets.

During the European trading session on Tuesday, chiefs of many of the world’s major central banks issued a joint statement in support of Federal Reserve (Fed) Chair Jerome Powell after the Trump administration threatened him with a criminal indictment. 🔗 Source 💡 DMK Insight Central banks backing Powell signals stability, but traders should watch for volatility. The joint statement from major central banks is a rare show of unity, likely aimed at calming markets amid political turmoil. This support could stabilize the dollar in the short term, but it also raises questions about the Fed’s independence. If Powell’s position is further threatened, we could see increased volatility in forex pairs, particularly USD-related ones. Traders should keep an eye on the DXY index and major currency pairs like EUR/USD and GBP/USD, as any shifts in sentiment could lead to rapid price movements. On the flip side, this situation could be a catalyst for risk-off sentiment, pushing investors towards safe-haven assets like gold or the Japanese yen. If the political pressure escalates, we might see a flight to safety, impacting correlated markets. Watch for key levels in the DXY around 105 and in gold around $1,900, as these could signal broader market reactions. 📮 Takeaway Keep an eye on the DXY index and major currency pairs; volatility could spike if Powell’s position is further challenged.

Germany 5-y Note Auction climbed from previous 2.27% to 2.47% 🔗 Source 💡 DMK Insight The jump in Germany’s 5-year note auction yield from 2.27% to 2.47% is a significant signal for traders: it indicates rising borrowing costs and potential shifts in monetary policy. Higher yields typically reflect increased inflation expectations or tighter monetary conditions, which could lead to a stronger euro and impact related assets like bonds and equities. Traders should keep an eye on how this affects the broader European bond market, especially if yields continue to rise. If the 5-year note breaks above 2.5%, it could trigger further selling in bond markets, affecting risk sentiment across equities and commodities. Conversely, if yields stabilize, it might suggest a temporary peak, providing a buying opportunity in risk assets. Watch for upcoming economic data releases that could influence these yields, particularly inflation reports or ECB statements, as they will be crucial in shaping market expectations moving forward. 📮 Takeaway Monitor the 2.5% level on Germany’s 5-year note; a break could signal further bond market volatility and impact euro-related assets.

The US benchmark WTI Oil has appreciated more than $4 per barrel in a four-day rally, reaching nearly two-month highs at $60.50 on Tuesday, before pulling back to the $60.00 area. 🔗 Source 💡 DMK Insight WTI Oil’s recent surge to $60.50 is significant for traders navigating volatility. The four-day rally indicates strong buying interest, likely fueled by supply concerns and geopolitical tensions. Traders should watch for a potential retracement around the $60.00 mark, which could serve as a support level. If prices hold above this threshold, it may signal further bullish momentum, possibly targeting the $62.00 resistance level. Conversely, a drop below $60.00 could trigger stop-losses and lead to a deeper pullback, affecting related markets like energy stocks and ETFs. Keep an eye on inventory reports and OPEC announcements, as these could influence market sentiment and price action in the coming days. 📮 Takeaway Watch for WTI Oil to hold above $60.00; a failure to do so could lead to a deeper pullback.