Daily Market Ahead: U.S. January Consumer Confidence Index and Asia Market Closures

TradingKey – Here are today’s key economic events to watch.

U.S. December Durable Goods Orders

The U.S. Department of Commerce is set to release its December durable goods orders, with market expectations pointing to an improvement from November. Analysts predict a 1.2% increase in December, up from November. A stronger-than-expected reading would likely support further gains for the U.S. dollar but could weigh on gold prices. In November, durable goods orders dropped by 1.1%, underperforming the forecasted decline of 0.3% and significantly falling short of the prior month’s 0.8% increase.

U.S. January Conference Board Consumer Confidence Index

The Conference Board will release its Consumer Confidence Index for January 2025, with a market consensus of 105.1, up from December’s reading. A stronger-than-expected figure could further bolster the dollar. However, in December, the index came in at 104.7, below the projected 113, which had limited the dollar’s upward momentum.

ECB Bank Lending Survey

The European Central Bank is set to publish its Bank Lending Survey, which will provide critical insights for the Governing Council's future rate decisions. Markets expect the ECB to cut rates four times in 2025, with most reductions likely occurring in the first half of the year to ensure inflation reaches the 2% target by midyear. ECB Chief Economist Philip Lane, in an interview with Austria's *Der Standard*, stated that the ECB will aim for a balanced monetary policy this year—one that avoids triggering a recession while not excessively delaying anti-inflationary measures.

Bank of Japan Monetary Policy Meeting Minutes

On January 29, the Bank of Japan (BOJ) will release a summary of its January monetary policy meeting. Based on recent comments from BOJ Governor Kazuo Ueda, rate hikes appear to be Japan’s monetary policy focus this year, suggesting a hawkish tone in the meeting minutes, which could benefit the yen. Governor Ueda said the central bank would raise rates and adjust monetary easing if economic conditions continue to improve this year.

Global Financial Market Closures

On January 28, several countries and regions, including South Korea, China, and Taiwan, will observe Lunar New Year’s Eve or the Lunar New Year holiday. Correspondingly, financial markets in these areas will be closed.