US stock markets managed to stage a rebound yesterday, but investors remain on edge, as the Fed begins its two-day monetary policy meeting and geopolitical tensions persist.
Fears over Ukraine remain high, with NATO sending additional ships and fighter jets in eastern Europe and putting forces on standby .
The US Department of Defense announced that it has placed up to 8,500 troops on heightened alert, to increase readiness to provide forces if NATO should activate its Response Force or if other situations develop .
The case for monetary tightening by the Reserve Bank of Australia (RBA) strengthens after today's high inflation data. Headline CPI rose to 3.5% y/y in Q4, compared to 3.0% prior.
On the Covid-19 front, WHO's Dr Tedros warned yesterday that "it is dangerous to assume that Omicron will be the last variant, or that we are in the endgame. On the contrary, globally the conditions are ideal for more variants to emerge." 
A sea of red was seen across the main Asia-Pacific stock markets, despite Wall Streets rebound, while European futures appear cautious. On the FX space, the US Dollar steadies and the JPY Basked is upbeat.
EUR/USD faces fresh pressure towards 1.1300.
GBP/USD is soft below 1.3500.
USD/JPY is tepid below 113.50.
USD/CAD shows indecision around 1.2650.
AUD/USD is soft, despite helps from higher AU inflation.
NZD/USD is on the back foot, above yesterday's 2022 low (0.6659)
GER30 is tepid above 15,100.
US30 returns to negative territory below 34,100, following yesterday's rebound.
USOIL is soft below 84.00.
XAU/USD is cautious, but holds above 1,840.
Economic Calendar Picks (GMT)
Market participants await Germany IFO Business Climate (09:00), US API Oil Stockpiles (21:30) and New Zealand Trade Balance (21:45).
In a busy earnings week, Microsoft is the first big name to release its quarterly results, reporting today after markets close.
See the economic calendar here.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
Retrieved 25 Jan 2022 https://www.nato.int/cps/en/natohq/news_191040.htm