As we close the week, our eyes were on the US 10-year bond yield, Ounce Gold and Dollar Index. The US 10-year bond yield, which declined to 3.32% during the week, has been reacting since yesterday and has reached 3.5% again today. The US Dollar Index reacted slightly to this, albeit slightly, and US stock markets have been under pressure since Wednesday.

We followed the statements of the Governor of the Bank of Japan in the market today. BOJ President Kuroda stated that they will continue the current easing policies in order to reach the 2% inflation target in the long term, and that the bond interest ceiling adjustment made at the last meeting is necessary and they do not regret it. He said that loose monetary policy will continue. The USDJPY pair moved up to 130.50 levels by moving about 200 pips during the day after the BOJ statements.

FED members will enter the blackout period before the February 1 meeting. Speaking before this period, Harker reiterated in his statements that a 25 basis point rate hike process should be started.

In addition, Harker added that inflation will determine how much interest rates will rise. He said that interest rates are currently at the highest level of 5%. Besides, many members make statements stating that the level of interest rates will be as important as how long they stay at those levels.

China will enter the new lunar year and will be closed next week.

During the day, data from the UK and Germany were announced. UK retail data overall fell short of expectations and the previous month.

The German Producer Price Index, on the other hand, came back negative on a monthly basis.

• UK – Core Retail Sales (YoY): -6.1% (Previous: -5.6%)
• UK – Core Retail Sales (MoM): -1.1% (Previous: -0.3%)
• UK – Retail Sales (YoY): -5.8% (Previous: -5.7%)
• UK – Retail Sales (MoM) : -1.0% (Previous: -0.5%)
• Germany – Producer Price Index (YoY): 21.6% (Previous: 28.2%)
• Germany – Producer Price Index (MoM) : -0.4% (Previous: -3.9%)