Summary:

• USD under pressure ahead of Donald Trump’s speech

• German CPI print ahead

• Rally on the stock markets ease

European equities follow into their US and Asian peers posting declines on Tuesday. US dollar slides being the weakest currency in the G10 basket. Markets await the first president Trump “State of the Union” speech. Gold prices gain while the oil ones continue to decline. Bitcoin declines approaching short-term ascending support line.

This week is full of important events in the United States – FOMC, payrolls report, ADP and ISM reports – they all will be tracked by the markets. The focus, however, is on Donald Trump who’s set to deliver his first “State of the Union” speech tonight.

Over the course of the past days the Bitcoin price was outstandingly muted despite reports, rumours which tended to shake the price earlier. A possible reason why the digital currency has become less volatile recently might be fading interest which has slumped since a peak made at the end of the last year.

European stock markets opened lower on Tuesday as the bearish moods from US and Asia spread to the region. Major benchmarks from the Old Continent decline on the back of underperformance of miner stocks as copper and gold prices fall.

Looking through the G10 space in the morning one may notice that the Japanese yen is by far the strongest currency in spite of the fact that the data released overnight turned out equivocal. Along with the JPY the US dollar is also trading higher recouping its last week’s losses as the 10Y yield is trading clearly above 2.7%.

Tuesday’s calendar is filled with the prints from the European economies and the Eurozone as a whole. We still have preliminary German CPI print ahead of us as well as US CB Consumer Confidence reading. In the evening oil traders may want to pay attention to weekly API report on inventories as it may give hints ahead of official DOE report.