Forex Today: US Dollar mixed as financial markets return to normal

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, January 3:

The US Dollar started the year advancing against most of its major rivals but ended it unevenly across the FX board. The EUR was the weakest, as EUR/USD retreated from the 1.0700 area towards the current 1.0650 price zone, while the AUD was the strongest, with AUD/USD holding above the 0.6800 threshold.

GBP/USD and USD/JPY finished Monday unchanged at 1.2045 and 130.75, respectively, while USD/CAD edged higher and settled at around 1.3560.

Most Asian stock markets remained closed, while some European ones were also inactive. The European benchmarks that actually operated on Monday posted modest gains. Wall Street remained closed.

There was no activity in bond markets, nor among commodities, with market players awaiting the next Asia opening for direction. Chances skew towards a downbeat mood after Chinese data released over the weekend indicated a steeper economic contraction in December 2022.

The macroeconomic calendar will include some interesting releases this week, with EU and German inflation updates and the S FOMC Meeting Minutes. On Tuesday, Germany will publish the preliminary estimate of the December Consumer Price Index, foreseen up by 10.7% YoY. Next Wednesday, the US will release employment figures, while the December Nonfarm Payroll report is scheduled for Friday.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Forecasting the first moves of 2023

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.