Forex Today: Markets recovering from Mid-East shock, Bitcoin shoots higher, US data eyed

Yohay Elam FXStreet

Here is what you need to know on Tuesday, January 7:

Middle East: The market mood has improved after several tense days. Oil prices are sliding while stocks are on the rise. Gold is holding onto some of its gains. The US has denied the Iranian foreign minister entrance to the US for the UN assembly. Uncertainty about a potential US retreat from Iraq has caused confusion about the next moves.

Trade: Reports that China will refrain from boosting quotas on agriculture purchases from the US have weighed on sentiment. The world's largest economies are set to sign Phase One of the trade deal next week.

Eurozone inflation figures for December are set to show a pickup headline Consumer Price Index with Core CPI holding onto the highs at 1.3%. On Monday, Markit's Services Purchasing Managers' Indexes beat expectations.

See Eurozone inflation preview: Highest core CPI since 2013 may send EUR/USD higher

The US ISM Non-Manufacturing PMI for December is forecast to show an increase in December, contrary to the disappointing figures for the manufacturing sector. The figure serves as a hint toward the Non-Farm Payrolls. Factory Orders are also of interest.

See ISM Non-Manufacturing PMI Preview: Last call for the concerned?

Brexit: Parliament is returning from the holidays and is set to advance the passage of the Withdrawal Agreement.

Cryptocurrencies have been advancing, with Ripple's XRP leading the charge on Monday and Bitcoin advancing later on and touching $8,000.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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