Forex News: Low Market Volatility in the 2nd Week of January 2024

In the dynamic realm of forex trading, staying attuned to the latest market developments is not merely a choice but a strategic necessity. The forex market is a complex and rapidly changing environment, where shifts in global economic, political, and social landscapes can send ripples through currency values in an instant. Forex news serves as the heartbeat of this intricate system, offering vital insights that empower traders to navigate with precision.

According to Daily Forex, here are a few insights and potential trends to keep an eye on in the forex market. 

Low Volatility Week in the Forex Market

In the previous week, the Forex market experienced a period of low directional volatility. Currencies, for the most part, demonstrated a consolidative trend characterized by minimal fluctuations. The lack of significant price movements suggests a period of relative stability or indecision among market participants. 

US Inflation Concerns Amidst Core CPI and PPI Data

The recent revelation of declining US core CPI (inflation) data from the previous month was a notable development in the past week. Additionally, the release of US PPI data on Friday, showcasing a month-on-month contraction of 0.1% (opposite to the expected increase), further solidified the notion that US inflation is on a downward trajectory, even though the headline annualized rate indicates a slight rise.

Impact of Australian and Swiss Inflation Data on Currency Markets

Last week, crucial economic data from Australia and Switzerland influenced the dynamics of the forex market. The Australian inflation report revealed a decline in the annualized rate, dropping to 4.3% against an expected 4.4%. Meanwhile, Swiss data indicated stable month-on-month prices, defying expectations of a 0.1% deflation. These releases contributed to notable shifts in currency values, underlining the impact of regional economic indicators on global forex trends.

Last Week’s Data Releases

  • Governor of the Bank of England Testimony: The testimony before the UK Parliament by the Bank of England Governor held no surprises, influencing the British Pound in the forex market.
  • UK GDP: The UK’s Gross Domestic Product exceeded expectations, exhibiting month-on-month growth of 0.3% compared to the anticipated 0.2%.
  • US Unemployment Claims: The US unemployment claims were nearly in line with expectations, contributing to the assessment of the American economic landscape.
  • Chinese CPI (Inflation): China’s Consumer Price Index revealed an annualized deflation of 0.3%, deviating from the expected contraction of 0.4%. These developments played a role in shaping currency values during the week.


The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell, or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision.

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