Market outlook for the week of 19th-23rd January

This week (January 19-23) starts with a bank holiday in the U.S., but inflation data from Canada will be critical. Key economic indicators, including UK unemployment rate and average earnings, are set to release. Particularly notable is the upcoming monetary policy decision from the Bank of Japan (BoJ), where discussions around additional rate hikes are ongoing. Despite two rate hikes last year, the current economic indicators are mixed, creating uncertainty in future policy direction. Japan's inflation continues to surpass the BoJ's target, but recent wage dynamics show signs of weakness, adding to the concerns. Therefore, the BoJ is likely to maintain the current interest rate of 0.75%, and how this decision affects the yen's value will be crucial. The depreciation of the yen could raise the prices of imported goods, which may impact household spending. Investors should be cautious and closely monitor the developments for trading strategies regarding the yen.