05/02/2024
Monday, 5th of January 2023 (European Market)
SLOW START TO PROCEEDINGS IN THE CURRENCY MARKET
-There's a slow start to proceedings this morning following an eventful past week. FOMC decision and a big Beat in NFP figures was the major highlights of the week with the US Dollar taking full advantage.
-Talking about the US Dollar, the currency is little changed today although USDIndex trades above 104.00 for the first time since December last year. USDJPY ranges around 148.40 this morning having recovered from 146.50 last week.
-GBPUSD is down 0.11% today, consolidating losses from trading on Friday but price is below a key resistance around 1.2650 which could still spur further downsides. EURUSD is also holding flat on the day but trading close to a key support around 1.0750 on the day.
HIGHER YIELDS PRESSURES COMMODITIES
-The strength of the US Dollar and rising yields is one of the major driving factors in the market. USOIL currently trades flat, holding on to support around $72.00/bbl but further sides could ensue if we get a pullback.
-GOLD is struggling near a key support around $2045 which is stalling further price movements to the downside but a clearance of this level could see market set sights at $2030 before price finds support again.
SENTIMENT AND CUMULATIVE STRENGTH/WEAKNESS
-Risk mood (sentiment) is mixed this morning although with higher yields, we could still see some negative flows. Equities are flat across board for now while Commodities are mostly pressured on the board but in small ranges.
-In FX, major currencies are still trading mostly mixed on the board for now although the strength of the US Dollar could be something the market could work with later in the day.
Cumulative Strength: NIL
Cumulative Weakness: NIL
-There's US PMI on the economic calendar today which could still create moves in the market; EURUSD still could still be in the mix for further downsides in the market should we see a better than expected report.
-Looking ahead, it's a relatively light session ahead of us on the economic calendar with the US PMI the only event to look forward to.
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