• US yields are firm at the start of 2022, focusing on US events. 
  • The FOMC, ISM and NFP will be critical events for the start of the year.

The yield of the US 2-year Treasury note is up over 1% while the 10-year is higher by 13% at the time of writing. This follows the end of year's slump as investors moved out of stocks in the last trading days before the New year celebrations. 

Key US data for the month ahead

The week starts off with major trading hubs, such as Sydney and Tokyo as well as London out in observation of New year's day. However, the US markets will and there will be a focus on critical events o the calendar. December jobs report January 7 will be key this week as will the minutes of the recent Federal Reserve meeting. Later in the month, the US Consumer Price Index data will be out on January 12, followed by PPI data on January 13, and Retail Sales on January 14. There will be a small two-week window for Fed speaking engagements in early January, as the media blackout for the January 25-26 FOMC meeting takes effect at midnight January 14.  The Beige Book for that meeting will be released on January 12.   

Meanwhile, the main event for the week ahead will be in the form of the US jobs market with the US Nonfarm Payrolls report. ''The late-December COVID surge likely came too late to prevent a pickup in US payrolls after the gain in November (210k) appeared to be held down by an overly aggressive seasonal factor,'' analysts at TD Securities explained.

US ISMs on the 4th will also be key. The levels should remain high according to analysts at TD securities. ''We expect the services index to decline more markedly following November's eye-popping jump to 69.1—an all-time high—and given the likely initial impact from Omicron. The MFG index probably fell below the 60 mark for the first time in four months. Anything over 60 is exceptionally strong.''

Federal Open Market Committee minutes will also be key. The minutes follow the FOMC's decision to double the pace of QE tapering and the projection of a significantly more hawkish dot plot will be the focus before then. ''Focus will now turn to the elements that led to the evolution of views among policymakers (including on "maximum

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Risk-aversion, softer Aussie inflation directs bears to sub-0.6500 zone ahead of US GDP

AUD/USD: Risk-aversion, softer Aussie inflation directs bears to sub-0.6500 zone ahead of US GDP

AUD/USD pares intraday losses around 0.6490, recently bouncing off daily lows, as traders await fresh clues to defend the latest pullback moves. That said, downbeat prints of Australia’s monthly Consumer Price Index (CPI) joined the risk-off mood to weigh on the Aussie pair during early Thursday.

AUD/USD News

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD sellers are up and roaring as sour sentiment joins firmer yields to renew the downside during early Thursday, after a day full of surprises and positive performance. Germany’s HICP may not impress pair buyers unless US GDP disappoints.

EUR/USD News

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold price is experiencing a healthy correction in the Tokyo session after witnessing a bumper rally. The precious metal is expected to find significant bids around the immediate cushion of $1,650.00 as the downside bias is not backed by momentum. 

Gold News

Cardano price remains still after Vasil hard fork, what’s next?

Cardano price remains still after Vasil hard fork, what’s next?

Cardano price has remained neutral despite the blockchain undergoing a massive upgrade this week via the Vasil hard fork. This update is multi-faceted and brings a host of improvements to the so-called “Ethereum-killer”, including transaction throughput.

Read more

A week after Japanese yen intervention

A week after Japanese yen intervention

Last Thursday was an incredibly volatile trading session for the USD/JPY. This volatility was largely caused by the Bank of Japan's (BoJ) intervention in the currency markets to defend its depreciating currency, the Japanese Yen. Last week’s move was the first time since 1998 that the BoJ had intervened.

Read more

Forex MAJORS

Cryptocurrencies

Signatures