The first month of the new year has always been the good start to start something new and keep on with the good old habits. Financial world is not an exception - life is starting to awake from the doze of countless celebrations.
In the beginning of January we have wintessed the unexpected inflation breakout in Germany, where consumer prices increased for 1.7%, which can seriously affect the whole euro zone.
Energy prices have started to increase again ($55 for a barrel of West Texas Intermediate crude oil).
USD is also showing quite stable bullish movement since Trump's election, so traders keep expecting further U.S. growth. Meanwhile, Chinese yuan is currently affected by the strong dollar and there can be serious pressure on it, if situation does not change shortly. Considering the current views of the new US president and his protectionist trade policy, we can say that this year won't be easy for yuan.
American and European manufacturing keeps showing stable growth and during 2017 we can expect further expansion in demand. Also, this year there is a tendency to hold on the long government bonds instead of the shorter-dated obligations.
Although financial market has always been a very fast-changing space, which can be hard and sometimes impossible to predict, it is within the powers of every trader to adapt his trading style to the existing circumstances and keep return rate as high as possible.