Here is what you need to know on Monday, January 9:
The US Dollar struggles to find demand at the beginning of the week with the US Dollar Index falling toward multi-month lows near 103.50 after having lost more than 1% on a daily basis on Friday. The market mood remains relatively upbeat after the risk rally witnessed ahead of the weekend and US stock index futures rise between 0.3% and 0.5% in the early European morning. Sentix Investor Confidence and November Unemployment Rate data will be featured in the European economic docket. Later in the session, November Consumer Credit Change from the US will be looked upon for fresh impetus.
The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls rose by 223,000 in December. This reading came in much better than the market expectation of 200,000 but failed to provide a boost to the US Dollar. Underlying details of the jobs report revealed showed that the annual wage inflation, as measured by the Average Hourly Earnings, declined to 4.6% from 4.8%, compared to analysts' forecast of 5%. Later in the American session, the ISM announced that the Services PMI dropped to 49.6 in December from 56.5 in November. The Employment Index declined to 49.8 in the same period and the Priced Paid Index dropped to 67.6 from 70.
Following these data releases, the 10-year US Treasury bond yield fell toward 3.5% and lost more than 4% on Friday. Wall Street's three main indexes rose more than 2% and the US Dollar suffered heavy losses against its rivals. According to the CME Group FedWatch Tool, markets are currently pricing in a 75% probability of a 25 basis points Fed rate hike in February, up from 57% early Friday.
EUR/USD gained more than 100 pips on Friday and continued to stretch higher toward 1.0700 early Monday. The data from Germany revealed on Monday that Industrial Production expanded by 0.2% on a monthly basis in November following October's 0.1% contraction.
GBP/USD rose sharply on Friday and ended up closing the week flat near 1.2100. With the US Dollar staying on the back foot in the early European session on Monday, the pair holds in positive territory at around 1.2150.
Gold price capitalized on falling US T-bond yields and registered impressive gains ahead of the weekend. XAU/USD preserves its bullish momentum early Monday and was last seen trading at its highest level sinc eearly May near $1,880.
Despite the selling pressure surrounding the US Dollar, USD/JPY stayed relatively quiet below 132.00 at the beginning of the week as Japanese markets remained closed due to Coming-of-Age Day bank holiday.
Bitcoin managed to push higher over the weekend and rose nearly 3% on a weekly basis. BTC/USD was last seen trading at its highest level since mid-December at around $17,200. Ethereum gained more than 2% on Sunday and preserved its bullish momentum early Monday. At the time of press, ETH/USD was up 1.5% on the day at $1,310.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD continues to juggle below 0.6660 ahead of Australian Retail Sales and CPI data

The AUD/USD pair is demonstrating a back-and-forth action below 0.6660 from Friday’s session. The sideways performance in the Aussie asset is expected to conclude and a power-pack action will be witnessed.
EUR/USD bulls attack 1.0800 amid risk-on mood, focus on ECB’s Lagarde, US Consumer Confidence

EUR/USD extends the week-start recovery to 1.0800 during early Asian session on Tuesday, picking up bids to refresh the intraday high of late, as the risk-on mood joins the hawkish comments from the European Central Bank (ECB) officials.
Gold faces resistance around $1,960 as US banking jitters ease, Yields soar

Gold is juggling below $1,960.00 in the early Asian session. The upside for the Gold price seems restricted as fears of the United States banking debacle have eased. Therefore, investors have liquidated their positions in Gold and US government bonds.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity

Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
Central banks are running full speed ahead to prevent the sense of a global crisis

Everyone wonders if a crisis mentality is not inevitable anyway. The Fed is mulling over whether to expand the emergency lending program instead of offering it upfront before the dirt hits the fan. Even if an actual crisis is averted, a credit crunch is clearly loaming.