📣 Markets Watch: Policy Signals and Global Activity Data Shape Mid-January Sentiment (Jan 19–25, 2026)

What to Watch This Week: Key Events: This week blends a U.S. holiday start with an increasingly active global calendar. As markets move past the first inflation and labour reads of the year, attention turns toward activity indicators and central-bank guidance. With policy expectations still being refined for Q1, reactions may be more selective and directional across FX, rates, and broader risk assets.

 Key Global Economic Events to Watch (Jan 19–25)

📌 Additional Factors to Monitor

• The U.S. market holiday at the start of the week may reduce early-week liquidity, increasing sensitivity to overseas data and headlines.
• ECB policy guidance will be closely watched for any adjustment in tone following recent inflation and growth data from the region.

🧭 Under-Radar / High-Importance Signals Ahead

• Next Week (Jan 27–28): The U.S. Federal Reserve policy meeting could heavily influence positioning this week, especially if incoming data alters expectations around the near-term policy path.
• Any surprise in European inflation or activity data may prompt early re-pricing ahead of the Fed decision.

🔎 Key Themes for the Week

• Policy Refinement: Markets continue to calibrate expectations for early-2026 policy moves, particularly in the U.S. and Europe.
• Activity vs. Inflation: With major inflation data mostly behind us, growth and activity indicators may carry more influence.
• Liquidity Sensitivity: Thin conditions early in the week may amplify moves, especially in FX and rates, before liquidity normalises.

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