CBT’s latest survey shows market participants holding a 23.2% inflation forecast for end-2026; this compares with 23.4% a month ago. 🔗 Source 💡 DMK Insight Inflation expectations are slightly down, but here’s why that matters: a 23.2% forecast for end-2026 indicates persistent concerns about price stability. For traders, this could signal a cautious approach from central banks, potentially affecting interest rates and currency valuations. If inflation remains elevated, we might see volatility in forex pairs, especially those tied to USD and EUR. Keep an eye on how this forecast influences central bank communications and market sentiment in the coming months. Also, consider that a slight decrease in inflation expectations might not be enough to shift the Fed’s or ECB’s stance significantly. If inflation data continues to show resilience, we could see a reversal in sentiment, leading to a stronger dollar or euro against other currencies. Watch for any shifts in economic indicators or central bank meetings that could provide further clarity on this front. 📮 Takeaway Monitor inflation data closely; a sustained trend above 23% could trigger significant shifts in forex markets, particularly USD and EUR pairs.

November jobs and December CPI data could provide a modest boost to sterling, potentially extending a short squeeze that has been building since late November. 🔗 Source 💡 DMK Insight Sterling’s potential lift from upcoming jobs and CPI data is worth watching closely. If the November jobs report shows stronger-than-expected employment figures, it could fuel a short squeeze that traders have been anticipating since late November. This is critical as the market sentiment around the pound has been shaky, and any positive data could trigger a rally. Conversely, if the data disappoints, we might see a quick reversal, especially if traders are caught off guard. Keep an eye on the 1.20 resistance level; a break above could signal further upside. Also, the December CPI data will be pivotal—higher inflation could lead to speculation about interest rate hikes, which typically supports the pound. The flip side is that if the data comes in weak, it could exacerbate bearish sentiment, leading to a potential drop below key support levels. Traders should monitor these data releases closely, as they could set the tone for the pound’s movement in the coming weeks. 📮 Takeaway Watch the 1.20 resistance level for sterling; strong jobs or CPI data could trigger a short squeeze.

The Chinese economy grew by 5% last year – but this should come as no surprise to anyone. After all, this was the goal of the Chinese Communist Party, and Xi Jinping had already mentioned a few weeks ago that the growth target had been achieved. 🔗 Source 💡 DMK Insight China’s 5% growth last year isn’t just a number—it’s a signal for traders to watch. With the Chinese Communist Party achieving its growth target, this could influence global markets, especially commodities and currencies tied to China. Traders should keep an eye on the yuan’s performance against the dollar, as a stable or strengthening yuan could indicate confidence in China’s economic recovery. If the yuan holds above key levels, say 6.5 against the dollar, it might attract more foreign investment, impacting forex pairs and commodities like copper and oil, which are sensitive to Chinese demand. On the flip side, if growth doesn’t translate into consumer spending, we could see volatility in related markets. Watch for any upcoming economic indicators from China, especially retail sales and industrial output, as these will provide more insight into whether this growth is sustainable or just a statistical blip. The next few weeks could be pivotal for positioning in both forex and commodity markets. 📮 Takeaway Monitor the yuan’s strength against the dollar; a stable yuan above 6.5 could signal increased foreign investment and impact related markets.

The Indian Rupee (INR) demonstrates weakness against the US Dollar (USD) at the start of the week. The USD/INR pair jumps to near the all-time high of 91.55 as the Indian currency continues to underperform its peers. 🔗 Source 💡 DMK Insight The INR’s dip against the USD is a red flag for traders: here’s why. With the USD/INR pair nearing 91.55, we’re seeing a significant weakness in the Indian Rupee that could signal broader economic concerns. This level is crucial; if it breaks above this all-time high, it could trigger further selling pressure on the INR, leading to a potential cascade effect across emerging market currencies. Traders should keep an eye on the Reserve Bank of India’s (RBI) response, as any intervention could shift sentiment quickly. Additionally, this weakness may impact commodities priced in USD, like gold and oil, which could see increased volatility as the INR’s purchasing power diminishes. But here’s the flip side: if the INR stabilizes and the USD shows signs of weakness due to upcoming economic data releases, we could see a reversal. Watch for key support levels around 90.00 for the INR, as a bounce from here could present a buying opportunity. Keep an eye on the daily charts for any bullish divergence that might signal a reversal in trend. 📮 Takeaway Monitor the USD/INR pair closely; a break above 91.55 could lead to further INR weakness, while support at 90.00 is critical for potential reversal signals.

Renewed US tariff threats over Greenland are unwelcome news for European industry, coming just as sentiment was beginning to recover from last year’s volatility. 🔗 Source 💡 DMK Insight US tariff threats on Greenland could shake up European markets again. As sentiment was finally stabilizing after last year’s turbulence, this new uncertainty could lead to increased volatility in European stocks and commodities. Traders should keep an eye on sectors like energy and materials, which are particularly sensitive to tariff changes. If tariffs are implemented, we might see a ripple effect on related assets, including the Euro and commodities like oil and metals, as supply chains adjust. Watch for key levels in the Euro against the USD; a break below recent support could signal further downside risk. But here’s the flip side: if the US backs down, we could see a quick rebound in European equities. So, it’s worth monitoring any developments closely, especially in the next few weeks as negotiations unfold. 📮 Takeaway Keep an eye on Euro/USD levels; a break below support could indicate further market volatility due to tariff threats.

Silver (XAG/USD) is hovering at levels above $93.00, trading at a short distance from the $93.90 all-time highs hit last week, favoured by a strong risk-averse sentiment after US President Trump announced additional tariffs to some of its major European partners.Trump has put investors on their toes 🔗 Source 💡 DMK Insight Silver’s recent surge above $93.00 is a direct response to geopolitical tensions, and here’s why that matters: The market’s risk-averse sentiment is palpable, especially following Trump’s tariff announcements, which typically trigger safe-haven buying. Silver’s proximity to its all-time high of $93.90 indicates strong bullish momentum, but traders should be cautious of potential pullbacks. If silver breaks above $93.90, we could see a rush towards $95.00, but a failure to maintain above $93.00 might lead to profit-taking, pushing prices back toward the $90.00 support level. Keep an eye on how these tariffs impact broader market sentiment, as correlated assets like gold (XAU/USD) may also react similarly, amplifying volatility. On the flip side, if the tariffs lead to a swift resolution or if economic data suggests a rebound, silver could face downward pressure. Watch for key economic indicators this week, particularly any shifts in US employment data or inflation reports, which could shift sentiment quickly. The immediate focus should be on maintaining positions above $93.00, as a breach below could signal a bearish reversal. 📮 Takeaway Watch for silver to hold above $93.00; a break above $93.90 could trigger a rally towards $95.00.

China achieved its 5% growth target in 2025, with Q4 growth largely in line with market expectations. Resilient exports and robust production were key supports, while services remained a stabilising factor. 🔗 Source 💡 DMK Insight China hitting its 5% growth target is a big deal for global markets, especially for commodities and currencies tied to Chinese demand. With Q4 growth aligning with expectations, traders should keep an eye on how this affects the yuan and related assets. Resilient exports suggest continued demand for commodities, which could bolster prices in sectors like oil and metals. If services remain stable, it might indicate a shift in consumer sentiment, impacting sectors like retail and travel. But here’s the flip side: if growth is driven more by exports than domestic consumption, it could signal underlying weaknesses in the economy that might not be sustainable. Watch for any shifts in trade policies or tariffs that could disrupt this growth narrative. For now, traders should monitor the yuan’s performance against the dollar, especially if it approaches key resistance levels. Any significant moves could trigger reactions in forex markets, particularly among major pairs like AUD/USD and NZD/USD, which are sensitive to Chinese economic data. 📮 Takeaway Keep an eye on the yuan’s performance against the dollar; any significant moves could impact commodities and related forex pairs in the coming weeks.

Washington’s threat of tariffs on eight European nations to secure Greenland has heightened transatlantic tensions, with France pushing for the EU’s anti-coercion measures. 🔗 Source 💡 DMK Insight Transatlantic tensions are rising, and here’s why traders should care: geopolitical risks can impact market volatility. The U.S. threat of tariffs on European nations over Greenland is more than just a diplomatic spat; it could disrupt trade flows and affect currencies like the euro and the dollar. If the EU responds with anti-coercion measures, we might see increased volatility in forex pairs, particularly EUR/USD. Traders should keep an eye on how these developments influence market sentiment, as heightened tensions often lead to safe-haven buying in assets like gold or the Swiss franc. On the flip side, if the situation de-escalates, we could see a rebound in risk assets. Watch for any official statements or trade negotiations in the coming weeks, as these could provide critical signals for market direction. The key levels to monitor are the 1.05 support and 1.10 resistance for EUR/USD, which could be tested depending on how this geopolitical situation unfolds. 📮 Takeaway Keep an eye on EUR/USD levels around 1.05 and 1.10 as geopolitical tensions evolve, impacting forex volatility.

EUR/USD holds gains at 1.1620 at the time of writing, after bouncing from seven-week lows at 1.1585 earlier on Monday. 🔗 Source 💡 DMK Insight EUR/USD’s bounce from 1.1585 to 1.1620 is more than just a technical rebound; it signals potential volatility ahead. Traders should note that this pair has been under pressure, with the recent dip reflecting broader market concerns about economic stability in the Eurozone. The bounce could indicate a short-term bullish sentiment, but it’s crucial to watch for resistance around 1.1650. If the pair fails to break above this level, we might see another test of the lows. Additionally, keep an eye on U.S. economic data releases this week, as strong numbers could push the dollar higher, reversing any gains in EUR/USD. On the flip side, if the Eurozone can show resilience, we might see a sustained rally. Watch for any news from the ECB that could impact interest rate expectations, as that will be a key driver for this pair moving forward. 📮 Takeaway Monitor EUR/USD closely around 1.1650 for potential resistance; a break could signal further bullish momentum.

President Trump’s threat to raise tariffs on European countries over Greenland underscores the persistent uncertainty around US trade policy, reigniting concerns of a broader US–EU dispute. 🔗 Source 💡 DMK Insight Trump’s tariff threat is a reminder that trade tensions can shake markets quickly. For traders, this uncertainty around US trade policy could lead to volatility in related assets, particularly the Euro and commodities tied to European economies. If tariffs are implemented, we might see a weakening Euro, which could impact forex pairs like EUR/USD. Keep an eye on the 1.05 level for potential support or resistance in the Euro. But here’s the flip side: if this is just posturing, markets could rally on relief. Watch for any official statements or negotiations that could clarify the situation. The next few days are crucial, as any escalation or de-escalation could set the tone for the rest of the month. 📮 Takeaway Monitor the EUR/USD around the 1.05 level; any tariff announcements could lead to significant volatility in the Euro and related markets.