Bank of England Chief Economist Huw Pill is scheduled to deliver closing remarks at the central bank’s annual research conference on Tuesday at 1400 GMT, which is 0900 US Eastern time. This event marks an important occasion for discussions related to monetary policy and economic research.

Huw’s comments will likely provide more insight into the Bank of England’s thinking on inflation, interest rates, and economic conditions. Given the timing, his remarks may influence expectations about future policy decisions. When a key figure at the Bank speaks, markets tend to listen carefully.

The focus remains on whether rate cuts will arrive sooner or later. With inflation still above the Bank’s target, officials have been cautious. However, recent economic data shows some signs of slowing, which could make room for a shift in approach. If Huw signals that current rates are enough to bring inflation under control, it may steer expectations toward potential adjustments in the coming months.

At the same time, financial markets have already priced in certain assumptions about the future path of interest rates. Any suggestion that these expectations are incorrect could lead to adjustments in asset prices and market positioning. If Huw leans towards a more restrictive stance, borrowing costs in certain areas might rise. But if his tone hints at eventual relief, traders may react accordingly.

We will also be paying attention to how global factors come into play. Economic conditions in the US and Europe continue to shape market sentiment. Shifts in Federal Reserve policy can influence decisions at the Bank of England. If Huw acknowledges external risks, it could be a signal that policymakers remain cautious about moving too quickly.

As always, timing matters. His remarks come after the latest economic data releases and before another key policy meeting. If traders sense a shift in thinking, we could see adjustments in market expectations. Those who react swiftly to any fresh signals may find opportunities. If his speech reinforces what is already expected, market movement may remain limited.

Huang Yiping, an advisor to the People’s Bank of China, indicated that the Chinese Consumer Price Index (CPI) is expected to decline moderately in February. He added that external factors will exert pressure on domestic demand this year.

Adjustments in the property market are causing a contraction in demand. Tariff increases from the Trump administration could sharply reduce China’s exports to the US.

In related economic activities, the PBOC has conducted a one-year Medium-term Lending Facility worth CNY300 billion at an interest rate of 2.0%. Meanwhile, the Australian Dollar remains stable amid heightened risk aversion.

Huang expects the downward movement in the CPI to be moderate. That suggests inflationary pressures are weak, which typically signals that demand is softening. Weak demand in China, the world’s second-largest economy, tends to have repercussions beyond its borders. Given that much of the country’s economy depends on domestic spending and exports, traders should be aware that low price growth could mean slower economic expansion. Inflation isn’t falling dramatically, but it isn’t rising at a pace that would suggest strong activity either.

He also points to external elements putting strain on domestic demand throughout the year. That is worth paying attention to because if demand remains weak over an extended period, policymakers may feel compelled to intervene. Traders and investors should therefore be prepared for decisions from the central bank designed to counteract these effects.

The troubles in the property sector are a known issue. Housing demand isn’t what it was, and that filters through to other industries. When fewer people buy homes, they don’t take out large loans. And when construction slows, fewer raw materials are needed. That reduces economic activity in those related sectors. This is not a short-term adjustment.

Then there’s the matter of the tariffs. The prospect of higher duties on exports to the US is no small issue. If enforced, they would make Chinese goods more expensive in one of its largest markets. This would inevitably squeeze manufacturers. Fewer exports mean lower production, which leads to reduced earnings and possibly job losses. That would weaken consumer spending further back home.

On the central bank side, the People’s Bank of China has deployed a one-year Medium-term Lending Facility, funnelling liquidity into the financial system. The size is considerable, and the interest rate attached to it is low. This points to authorities ensuring access to credit remains inexpensive. When central banks take these steps, they are usually trying to boost lending and economic activity without resorting to more aggressive moves. This should be seen as part of the broader effort to maintain stability in an environment where the risks, as outlined earlier, remain present.

Meanwhile, the Australian Dollar is not showing much movement despite the widespread cautious sentiment in global markets. The stability suggests that while traders are cautious, they are not yet reacting in a way that would send the currency lower. It is often sensitive to shifts in market confidence, particularly when there are risks related to China. If uncertainty builds over the coming weeks, the lack of volatility in the currency may not last.

The Trump administration is pursuing tighter controls on semiconductor exports to China. This involves encouraging Japan and the Netherlands to align with US restrictions and potentially implementing tighter controls on Nvidia chip exports.

Furthermore, the US is assessing stricter measures regarding Chinese manufacturers SMIC and SCMT. Meetings have taken place between US officials and their counterparts from Japan and the Netherlands to prevent engineers from Tokyo Electron and ASML from servicing semiconductor equipment in China.

Washington is striving to limit Beijing’s access to advanced chip technology, not just by tightening its own export controls but by urging allies to follow suit. Aligning policies with Tokyo and The Hague would make it far harder for Chinese firms to secure essential semiconductor components. Restricting Nvidia chip exports is another move being considered, particularly as these components play a vital role in artificial intelligence and high-performance computing.

Scrutiny extends beyond restricting physical goods. Officials are questioning how much technical support Chinese companies should receive. Talks with Japan and the Netherlands indicate an effort to cut off maintenance services for machines essential to Beijing’s chip production. If engineers from Tokyo Electron and ASML are prevented from servicing equipment, this could hamper operations at key Chinese manufacturers, including SMIC and SCMT.

Such measures would create further bottlenecks for China’s push toward semiconductor self-sufficiency. Without access to Western machinery and expertise, producing advanced chips becomes far more difficult. While Beijing has been investing heavily in domestic alternatives, restrictions on maintenance and technical assistance could slow progress.

For markets, these developments carry weight. Regulations affecting Nvidia chip exports would have direct implications for technology companies relying on these components. Any shift in trade restrictions will influence supply chains, affecting chipmakers and the industries depending on them.

Geopolitical tensions are driving these regulatory efforts. Policymakers in Washington view advanced semiconductors as a matter of national security, not just trade. The reliance on Japanese and Dutch cooperation shows that isolating China’s access to these technologies is not something that can be done unilaterally. It requires coordination among countries holding key positions in the semiconductor industry.

Price action will reflect how traders assess these policy manoeuvres in the coming weeks. As discussions continue, company valuations could move based on expectations of stricter restrictions or policy shifts. Market participants should follow developments closely to gauge any further steps taken by Washington, The Hague, or Tokyo.

Major currency pairs experienced limited movements on Monday due to a lack of high-tier economic data. On Tuesday, the European Central Bank will release Negotiated Wage Rates for Q4, while the US will see regional manufacturing surveys and the Consumer Confidence Index.

The US Dollar Index started the week under selling pressure, reaching below 106.20 but later fluctuated above 106.50. The index has been affected by a cautious market mood.

EUR/USD opened positively, rallying above 1.0500 but entered a consolidation phase above 1.0450. GBP/USD experienced a minor decline, remaining above 1.2600, while USD/JPY initially rose but retreated to 149.60.

Japan’s Corporate Service Price Index showed a 3.1% year-on-year increase in January. Gold prices reached an all-time high above $2,955 before correcting to below $2,940.

Market participants began the week with subdued price action, given the absence of data releases capable of driving volatility. As we advance into Tuesday, attention will turn towards Europe’s latest wage figures and survey-based indicators from the United States, which could shift sentiment if they outperform or disappoint. These releases, while not top-tier, will still provide insight into economic momentum.

The US Dollar came under pressure in early trade, pushing the Dollar Index towards 106.20. However, as sentiment remained cautious, the index found some footing and rebounded above 106.50. This back-and-forth movement suggests that markets are waiting for clear direction from incoming data before making decisive moves. The way investors react to Tuesday’s figures will set the stage for how the currency behaves in the coming days.

The Euro gained some traction at the start of the week, climbing past 1.0500 against the Dollar. However, as buyers struggled to maintain momentum, the pair drifted lower but held above 1.0450. Similarly, Sterling faced mild selling pressure yet managed to remain above the 1.2600 threshold. The Japanese Yen saw an early push higher in USD/JPY, only to reverse course towards 149.60. The movement in this pair highlights traders taking profits amid uncertain risk sentiment.

Japan’s latest Corporate Service Price Index showed a 3.1% increase from a year earlier, reinforcing the view that pricing pressures remain persistent in the services sector. While this is not the primary inflation gauge for monetary policymakers, it does offer clues about how inflation dynamics are playing out beneath the surface. This could become more relevant as markets assess future moves by the Bank of Japan.

Commodities saw a volatile start to the week, particularly in gold. The precious metal surged to a fresh record above $2,955 before retreating slightly below $2,940. Price swings of this nature underscore the tug-of-war between safe-haven demand and profit-taking by short-term traders. With inflation and geopolitical risks still in focus, gold’s ability to hold elevated levels will be key in gauging broader market sentiment.

For traders dealing in derivatives, volatility expectations and positioning around these developments will be key in shaping short-term strategies. While the lack of major events on Monday kept price action restrained, the unfolding data cycle could lead to sharper moves as expectations adjust accordingly.

Isabel Schnabel, a board member of the European Central Bank, is scheduled to deliver a keynote speech at a Bank of England conference on Tuesday.

The event will occur at 1300 GMT / 0800 US Eastern time as part of the Bank of England’s Annual Research Conference, themed “The Future of the Central Bank Balance Sheet.”

Schnabel’s address will centre on the subject of “No Longer Convenient? Safe Asset Abundance and r*.”

Her remarks are expected to provide insight into how the European Central Bank currently views the balance of risks in financial markets. Given her influence within the ECB, any mention of long-term interest rate trends or liquidity conditions could shift expectations around future policy decisions.

Recent discussions among policymakers have highlighted concerns about the availability of safe assets and how this affects borrowing costs. If Isabel outlines new considerations regarding this issue, we could see adjustments in how traders position themselves. A speech that leans towards tighter financial conditions might prompt market participants to reconsider how they price longer-dated assets.

The timing of this address is also important. Markets have been searching for clearer guidance on the direction of monetary policy, not just in Europe but globally. Data over the past few weeks has reinforced the sense that inflation is moving closer to target, yet uncertainty remains. If her remarks suggest that officials see risks tilted in one direction more than previously thought, that could influence expectations around bond supply dynamics.

Speeches like this often prompt immediate reactions, even before any formal policy action. If Isabel signals that liquidity trends are shifting, that could alter market participants’ expectations around funding conditions. Meanwhile, if her comments indicate a more cautious stance on withdrawing support, that could affect sentiment on short-term rate projections.

What matters most is whether she introduces a perspective that markets have not yet fully priced in. If she challenges assumptions about how quickly balance sheets might shrink, that could reshape expectations for how central banks manage excess liquidity. With traders already adjusting to shifting rate expectations, any change in this narrative could be reflected in asset price movements soon after her remarks.

For those tracking sovereign yields and bond spreads, any reference to structural shifts in safe asset demand could be particularly relevant. If Isabel suggests that supply constraints could affect rate dynamics, that may lead to reassessments of where fair value lies for longer maturities. This would have implications far beyond the euro area, given the interconnected nature of global bond markets.

As we head into the coming weeks, attention will remain on how central bank officials balance financial stability concerns with their broader policy objectives. Any deviation from the prevailing expectations could be met with quick adjustments in positioning. Keeping a close eye on both the speech and any subsequent commentary from colleagues will help in interpreting how policy signals are shifting.

Germany’s Gross Domestic Product (GDP) in the fourth quarter (Q4) has recorded a decline of 0.2%, aligning with forecasts.

This downturn indicates challenges in the German economy, contributing to discussions about potential future economic strategies and interventions.

A drop of 0.2% in Germany’s GDP for the final quarter of the year had been expected, yet it still underlines ongoing difficulties within Europe’s largest economy. A contraction like this generally hints at weaker industrial output, lower consumer spending, or external pressures such as reduced demand from key trading partners. These figures will renew debates over policy responses and whether further measures are needed to spur growth.

Meanwhile, expectations around inflation are shifting again. With price growth in the eurozone showing signs of slowing, speculation around European Central Bank (ECB) decisions is growing. Any indication that rate cuts might come earlier than previously thought could impact market positioning, particularly in rate-sensitive assets.

Turning to the United States, Federal Reserve Governor Christopher Waller has reiterated his view that there is no pressing need to cut interest rates immediately. He acknowledges progress in bringing inflation down but maintains that patience is necessary before making adjustments. His stance mirrors recent messaging from other Fed officials, reinforcing the idea that borrowing costs will remain elevated for longer than some had hoped.

Federal Reserve Chair Jerome Powell takes to the stage this week, and markets will be watching for any hints that diverge from what officials have already stated. If Powell signals that the Fed might reconsider its timing on rate cuts, it could prompt fresh market movements, particularly in bond yields and currency markets.

Elsewhere, the focus remains on the energy sector. Crude oil prices have been steadier following earlier volatility. With supply-side concerns and geopolitical tensions still present, traders will continue to factor in potential disruptions when assessing future price movements.

For those involved in derivatives, the coming weeks will demand close attention. GDP contractions, central bank policies, and commodity price fluctuations all bring potential trading opportunities and risks. Staying ahead of policy shifts and understanding broader economic signals will be key when navigating market moves.

The Bank of Korea will assess the timing and pace of future base rate cuts following its recent reduction. There is a high level of uncertainty surrounding Korea’s growth outlook.

The Bank plans to monitor the domestic political climate closely. It anticipates a slowdown in export growth and will examine both domestic and international economic policy changes.

The effects of the recent rate cuts will also be observed carefully. Domestic economic growth is expected to remain low for an extended period, requiring caution regarding potential increases in household debt.

Various factors, including U.S. tariff policies, Federal Reserve actions, and local government stimulus measures, contribute to economic uncertainties. Additionally, there is a need for caution concerning exchange rate volatility.

Inflation levels are projected to remain stable at around 2% due to subdued demand pressures.

The recent rate cut reflects an adjustment aimed at addressing sluggish economic conditions, but further reductions will depend on how things unfold. Following this move, the bank will take a cautious approach, weighing risks tied to debt accumulation.

Trade remains a concern. Overseas demand is showing signs of a slowdown, and with expected shifts in global monetary policy, external risks are not easing. The direction taken by policymakers in Washington will have immediate consequences, particularly if tariff adjustments alter the balance of trade. At the same time, domestic initiatives to support economic activity will require careful handling to avoid unintended distortions.

Price stability seems to be holding, with inflation tracking close to current projections. However, the persistence of weak demand suggests that cost pressures are unlikely to build quickly. That being said, swings in foreign exchange markets could pose challenges. A weaker currency may lift import prices, and if confidence wavers, capital flows could become less predictable.

For now, keeping a close watch on global shifts remains essential. Any further response will need to account for how these external and internal conditions develop in the coming weeks.

Goldman Sachs predicts a rise in copper prices to a range of $10,500 to $11,500 per ton. The firm anticipates deficits of 180,000 tons in 2025 and 250,000 tons in 2026.

They expect copper prices to breach $10,500 per ton in the first quarter of 2026. However, the firm believes that the price will be limited to a maximum of $11,500 per ton.

Goldman Sachs sees a tightening copper market over the next two years, driven by growing shortages. The firm projects a supply gap of 180,000 tonnes in 2025, widening further to 250,000 tonnes in 2026. With demand still increasing, they believe this will lift prices above $10,500 per tonne by early 2026. That said, they don’t see prices climbing indefinitely, as they expect an upper boundary at $11,500 per tonne.

The forecast suggests that supply constraints will strengthen as production fails to keep up with consumption. Mining delays, lower ore grades, and limited expansion in output are all factors that could keep supply tight. At the same time, demand remains firm, particularly from sectors such as renewable energy and electric vehicles, both of which rely on copper for infrastructure.

Given these conditions, short-term price moves may be more volatile as traders adjust to shifting expectations. Sudden changes in supply forecasts or economic data could push prices higher or lower in a short period. Longer-term investors may position themselves in anticipation of supply deficits supporting higher prices, but not exceeding the levels outlined by the bank.

Market participants should also watch for policy shifts that might influence demand. Any government initiatives related to infrastructure, energy transition, or trade restrictions could add support to the bullish outlook. On the other hand, signs of economic slowdown might lead to temporary pullbacks.

While some might expect prices to overshoot, Goldman Sachs maintains that increases will remain contained within their projected range. If market conditions remain as expected, traders should see the price move towards the lower threshold before testing higher levels as shortages deepen.

Gold prices in the United Arab Emirates decreased on Tuesday, with the cost at 347.03 AED per gram, down from 348.44 AED on the previous day. The price for Gold per tola fell to 4,047.66 AED, from 4,064.09 AED the day before.

Current gold prices in AED include 3,470.30 AED for 10 grams and 10,793.77 AED for a troy ounce. Gold prices are adjusted from international prices to local currency and measurement, updated daily based on market rates.

Central banks are major gold holders and bought 1,136 tonnes worth around $70 billion in 2022, the highest annual purchase on record. Factors influencing gold prices include geopolitical instability, interest rates, and movements of the US Dollar.

Gold has dropped slightly in the United Arab Emirates since Monday, and if we look at both per gram and per tola prices, the downward movement is clearly visible. A shift of just over one dirham per gram may not seem much at first glance, but it can add up for larger volumes. At 10 grams, that’s around 10 dirhams less, and for a whole ounce, the adjustment means nearly 15 dirhams lower than the previous day.

The reason gold prices in the UAE move the way they do is not just down to international markets. Local adjustments are made based on exchange rates and small fluctuations in demand and supply. However, the broader trends are set by global factors. Central banks continue to be major buyers, with their stockpiling habit well established. In 2022 alone, these institutions picked up over a thousand tonnes of gold, and that level of demand plays a part in long-term pricing.

What really sways gold on any given day, though, is a combination of interest rates, geopolitical uncertainty, and, crucially, the US Dollar’s movement. When investors see greater risks in the economy, gold tends to do well. If central banks hold interest rates higher for longer, gold often faces pressure because other assets that offer interest look more attractive. And since gold is priced worldwide in US Dollars, when that currency rises against others, gold becomes more expensive internationally, sometimes pushing demand down.

For those involved in future contracts or gold-linked derivatives, keeping an eye on upcoming statements from policymakers will be necessary. Interest rate decisions remain one of the biggest forces in the gold market. If inflation pressures remain high, central banks may avoid rate cuts for longer than traders expect. That would mean gold might struggle to rise sharply. If central banks indicate they’re ready to ease policies sooner, gold could find stronger support.

In practical terms, traders who are active in gold options or futures need to consider volatility when making their next moves. With price shifts tied to central bank actions and currency changes, short-term strategies will require close attention to market news. Ensuring stop-losses are set wisely and keeping risk management tight will be necessary over the coming weeks. The trends seen so far suggest that any sudden changes in the price of gold will likely be guided by rate expectations and investor sentiment, more than just supply and demand alone.

Trump has announced plans to sign additional executive orders on Tuesday at 1500 US Eastern time. Earlier statements confirmed that tariffs on Canada and Mexico will proceed, and he expressed intentions to advance the Keystone XL pipeline project.

On February 4, Trump signed an executive order regarding Iran, further shaping his administration’s foreign policy. These developments reflect ongoing actions in the political landscape as decisions continue to unfold.

These executive orders demonstrate a continuation of the policies that Donald set in motion during his campaign. By moving forward with tariffs on Canada and Mexico, he reinforces a stance on trade that prioritises domestic industries over previous agreements. This decision is not isolated. It affects multiple industries and could lead to reactions from the affected countries, particularly in manufacturing and agriculture.

The Keystone XL pipeline announcement signals further support for fossil fuel infrastructure. This decision follows years of regulatory hurdles and debate, and it underlines a shift towards policies that favour domestic energy projects. Market participants should recognise the direct effects this could have on energy prices, production levels, and supply chain adjustments.

The executive order on Iran, signed on February 4, fits into broader foreign policy shifts. Given the nature of previous measures against the country, this introduces new elements for those monitoring geopolitical influence on markets. It is not a standalone action. It aligns with earlier rhetoric and policy directions that suggest further restrictions or responses. The consequences of such a move could extend beyond immediate diplomatic tensions, affecting energy markets and financial instruments tied to them.

With the upcoming announcements scheduled for Tuesday at 1500 US Eastern time, additional changes are expected. These are not routine legislative measures but direct actions that carry weight in multiple sectors. Those tracking policy changes should remain attentive to any further movements in trade, energy, and foreign relations. Understanding these connections allows for better judgement of potential shifts ahead.