Morning Juice – Europe Session Prep

Good Morning Traders.
It is Monday the 26th of January. Here is what to look out for today.

Sentiment
Japanese Prime Minister Sanae Takaichi sent a fresh warning to financial markets amid a weakening yen and surging bond yields, saying the government will be ready to take action. “It is not for me as a prime minister to comment on matters that should be determined by the market, but we will take all necessary measures to address speculative and highly abnormal movements,” she said during a television debate among party leaders on Sunday. Japan’s top currency chief Atsushi Mimura said authorities in Tokyo will respond to movements in the foreign exchange market appropriately as needed in close coordination with their counterparts in Washington. Senate Democratic leader Chuck Schumer vowed to block a massive spending package next week unless Republicans strip funding for the Department of Homeland Security, dramatically increasing the risk for a partial US government shutdown. Gold surged beyond $5,000 an ounce for the first time, extending a breakneck rally fueled by US President Donald Trump’s reshaping of international relations and investor flight from sovereign bonds and currencies.

Docket
04:00 ET
German IFO
Expectations – Forecast: 90.3 | Prior: 89.7 | Range: 91.2 / 88.5
Business Climate – Forecast: 88.2 | Prior: 87.6 | Range:89 / 87
Current Conditions – Forecast: 86 | Prior: 85.6 | Range: 86.8 / 85.2

Speakers
06:00 ET
ECB’s Nagel gives a speech titled: “Outlook for 2026 in light of diverse global challenges”.