Forexlive European FX news wrap: Awaiting the FOMC decision

• US MBA mortgage applications w.e. 24 January -2.0% vs +0.1% prior
• UK’s Reeves: We begun to turn things around
• Italy January consumer confidence 98.2 vs 96.0 expected
• Eurozone December M3 money supply +3.5% vs +3.8% y/y expected
• European stocks mostly positive to kick off the session
• Spain Q4 preliminary GDP +0.8% vs +0.6% q/q expected
• Germany February GfK consumer confidence -22.4 vs -20.0 expected
• Alibaba releases AI model it claims surpasses DeepSeek-V3
• OpenAI says it has evidence China’s DeepSeek used its model to train competitor – FT
• What are the main events for today?
• Japan January consumer confidence 35.2 vs 36.6 expected

It’s been a calm session in terms of economic data and newsflow. There was no major market mover. Things in the market continued where they left yesterday with the US Dollar gaining more ground and stocks extending the gains.

Treasury yields have not moved much although they are slightly negative. Gold is down 0.2% on the day, while crude oil has seen a 0.7% drop.

In the American session, we have the BoC and the FOMC policy decisions. The Canadian central bank is expected to cut by 25 bps, while the Fed is seen holding rates steady.

This article was written by Giuseppe Dellamotta at www.forexlive.com.