Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
The US economy advanced an annualized 1.9 pct on quarter in the three months to December of 2016, lower than a 3.5 pct expansion in the previous period and below market expectations of 2.2 pct, advance estimates showed.
The deceleration in real GDP in the fourth quarter reflected a downturn in exports, an acceleration in imports, a deceleration in PCE, and a downturn in federal government spending that were partly offset by an upturn in residential fixed investment, an acceleration in private inventory investment, an upturn in state and local government spending, and an acceleration in non-residential fixed investment.
Elsewhere the detail is mostly encouraging –
The personal spending added +1.7ppts,
The business investment chipped in with a +0.3ppt addition to growth (the best in nearly 2yrs) and
The housing investment also added +0.4ppts, the highest in a year.
Private domestic demand, a better gauge of growth, came in at a decent 2.8%, broadly in line with the Fed's expectations of moderate growth.
Durable goods orders fell 0.4% in December (vs +2.5% expected), the drop mainly due to a 2.2% decline in transportation orders that defied gains in Boeing orders and vehicle assemblies.
Ex-transportation there was a 0.5% gain alongside solid equipment and shipments data that accounted for a stronger than expected report overall.
Inflation expectations (Michigan Univ.) for 5-10yrs ahead rose from December’s 2.3% record low to 2.6%, while overall consumer sentiment was revised higher.
The U.S. central bank is seen raising borrowing costs later this year given the fiscally expansive policies proposed by Donald Trump, and the new president’s agenda may help to lift wages in 2018, hoisting labor costs, the bank said in a Jan. 25 report.
While the dollar index (DXY) seems edgy at this juncture but senses strong support at 100 marks. The dollar index trend has been oscillating between 93 and 103 range since march 2015. To our surprise there seem to be no lingering doubts as to how reliable the news we are being told by the Trump camp are.
The Japanese yen was the major gainer, with USDJPY at around 114.700 levels, while the euro and, to a lesser extent, the pound also rose against the US dollar.
