This is what you need to know to trade today friday january 6:
Supported by encouraging US jobs data, the dollar outperformed its rivals on Thursday, with the dollar index rising to its highest level in three weeks above 105.00. As of early Friday, markets are relatively quiet as attention turns to Eurozone inflation and retail sales numbers ahead of the December US jobs report. US stock index futures are trading slightly higher after heavy losses in Wall Street’s main indices on Thursday, and the 10-year US Treasury yield remains slightly above 3.7%.
Monthly data released by ADP revealed on Thursday that US private sector employment rose by 235,000 people in December, well above market expectations of 150,000 people. Other data in the report revealed that annual wage inflation rose 7.3% in the same period. In addition, the US Department of Labor announced that in the last week of 2022, 204,000 initial claims for unemployment benefits were registered, compared to 223,000 the previous week.
US Non-Farm Payrolls are forecast to rise by 200,000 in December, following the better-than-expected increase of 263,000 in November. Wage inflation, as measured by hourly earnings, is expected to ease to 5% a year from 5.1% in November. Pending labor market data, the Dollar Index consolidates its recent gains slightly above 105.00.
Non-Farm Payroll Forecast: Layoffs Extended or Another Month of Success? Three scenarios for the dollar
The EUR/USD fell sharply in the second half of trading on Thursday, reaching as low as 1.0500 before entering a consolidation phase. The euro zone annual Consumer Price Index (CPI) is expected to fall to 9.7% in December from 10.1% in November.
Ahead of EU inflation: easing of price pressures will raise hopes, but can it affect the Euro?
On Thursday, the pair GBP/USD it fell below 1.1900 for the first time since late November, but managed to stage a modest bounce. In the absence of high-profile UK releases, the dollar’s reaction to US data should weigh on the pair heading into the weekend.
The USD/JPY closed on Thursday for the third straight day in positive territory and continued higher on Friday during Asian trading hours. At press time, the pair was up 0.5% to 134.10. On Friday, the Bank of Japan (BoJ) carried out another unscheduled/emergency operation to buy Japanese Government Bonds (JGB) and announced that it was conducting a two-year collateral pool operation for the third consecutive session.
After the sharp drop on Thursday, the AUD/USD is holding on to modest daily gains just above 0.6750 on Friday. China has reportedly placed its first import order for Australian coal, helping the AUD hold its ground for the time being.
The price of Prayed It snapped a two-day winning streak and lost more than 1% on Thursday on pressure from the overall strength of the US dollar and recovering Treasury yields. The XAU/USD pair advances towards $1,840 early Friday, while the 10-year US Treasury yield is holding steady.
December Non-Farm Payrolls Preview: Analyzing Gold’s Reaction to NFP Surprises
The Bitcoin it was unable to consolidate its weekly gains amid risk aversion and fell back below $16,700. ethereum posted small losses on Thursday and was seen trading flat around $1,250.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
