Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
The trend in calendar-adjusted IP levels in CEE countries remains stable so far. Some of the latest dips represent recent month-on-month declines, but these are not sharp enough to raise questions about the trend.
Earlier in the month, we saw stable Polish data even after months of decline in the Polish PMI and GDP data this week is also likely to show a robust 3.8% y/y increase. Hungarian IP data for December record a strong 9.4% y/y increase in headline terms, although falling 0.7% m/m after seasonal and working day adjustments.
However, PMI's have been declining in key countries such as Poland and Turkey for several quarters now and is edging lower in Hungary as well. Whether the data merely reflects geo-political risk perceptions rather than demand conditions is yet to be confirmed.
"We remain vigilant for signs of deceleration based on what we have observed with the German Ifo, but for now, the hard data remain supportive of CEE exchange rates." notes Commerzbank in a research note.
