Macro-News round-up:

Germany: Inflation rate increased to 3.70% in December from 3.20% in November of 2023. German consumer prices rose by 0.1% M/M in December 2023, still, the data was in line with expectations. ECB policymaker Joachim Nagel said yesterday that It is too early for the European Central Bank to discuss cutting interest rates because inflation remains high. It would be interesting to keep an eye on this expected bearish turn in the EURUSD.

Germany’s ZEW current conditions indicator comes out slightly worse than expected, and believe me, expectations were already pessimistic. Fortunately, the ZEW economic sentiment indicator improved a bit.

Canada: Today we will know the Canadian CPI rate. Canada’s high crude oil stockpiles mean that the unusually low crude oil price in recent weeks is leaving the CAD highly discounted. The USDCAD has been rising over the last few days, especially over the last 24 hours, and is currently approaching the 1.35 – 1.3525 level where it could have possible resistance.

EE.UU: Donald Trump wins the Iowa caucuses in a “landslide” victory, according to US media projections. He won about 67% of the vote, leading the Republican Party into the November elections. The second favorite candidate was Ron DeSantis, with about 18% of the Republican vote.

Middle East tensions escalate: Iran claimed responsibility for the bombings in Erbil, Iraq, and Aleppo, Syria, last night, saying it was an operation against “anti-Iranian terrorist organizations”. Eight facilities near the US consulate in the city of Erbil (the administrative center of Iraqi Kurdistan, an autonomous region in northern Iraq) were reportedly damaged, according to local Kurdish media. The US condemns Iran’s “reckless” missile attack that left four dead in Erbil (Iraq).

Oil prices do not seem to have reacted aggressively, and remain at similar or even lower levels than before the attack.