FXStreet (Delhi) – Research Team at BNP Paribas, suggest that the market sentiment is likely to remain a key driver for FX markets this week. Key Quotes “The near-term risk outlook remains quite challenging as equities and oil prices are still struggling to find a floor with Asian markets moving lower again this morning. Key events this week will be from the data calendar with the FOMC entering a blackout period before its January 27 policy announcement. China’s key activity data will be released on Tuesday, while US CPI on Wednesday should show that base effects will contribute to pushing the y/y rate of headline inflation up to 0.8%. This should ease some of the global deflationary fears and we remain long USD against the AUD and JPY via options structures. Note that US equity and bond markets are closed on Monday.” For more information, read our latest forex news.