This is what you need to know to trade today thursday january 5:
The US dollar holding firm against its main rivals early on Thursday, as investors appear to have stayed on the sidelines awaiting the release of key macroeconomic data. The hawkish tone seen in the minutes of the December Federal Reserve meeting It also provides support for the currency, with the benchmark 10-year US Treasury yield recovering above 3.7% after a two-day slide. The German trade balance and the PPI Producer Price Index for the euro area November will be the most outstanding data on the European economic agenda. Later, ADP to Release Monthly Report on US Private Sector Employment. In the second half of the day, the initial applications for unemployment benefits and the balance of trade in goods will be published.
Risk appetite in the markets made it difficult to bid for the US dollar on Wednesday. During the American session, however, the ISM manufacturing PMI showed that employment in the manufacturing sector grew unexpectedly in December. In addition, the United States Bureau of Labor Statistics reported that there were almost 10.5 million vacancies on the last day of November, compared to the market expectation of 10 million. Encouraging employment data helped the dollar shake off downward pressure.
Meanwhile, the FOMC stated in its December meeting minutes that most participants agreed that “much more evidence” of progress would be needed before confirming that inflation is on the downward path. The publication also reminded investors that policymakers want to ensure that markets do not view slowing rate hikes as preparation for a political turnaround. The DXY Dollar Index erased much of its daily losses and closed above 104.00 on Wednesday before entering a consolidation phase on Thursday.
The EUR/USD snapped a two-day losing streak on Wednesday. The pair is trading in a tight range slightly above 1.0600 in the European morning. Notably, Euro Stoxx 50 Futures are trading flat on the day, reflecting the market’s cautious stance.
The GBP/USD gained almost 100 pips on Wednesday, but struggled to maintain its bullish momentum. At the time of writing, the pair rises and falls near 1.2050. The Times reported late on Wednesday that British Prime Minister Rishi Sunak was scheduled to announce on Thursday a minimum legislation on strike.
The USD/JPY moves modestly lower on the day below 132.50 early Thursday after have added more than 150 pips on Wednesday. Citing three sources familiar with his thinking, Reuters reports on Thursday that the Bank of Japan (BoJ) is likely to increase the fiscal 2022 and 2023 forecasts for the Consumer Price Index (CPI) in their new quarterly projections.
The USD/CAD seems to have entered a consolidation phase slightly below 1.3500 after taking heavy losses on Wednesday. Crude oil prices fell sharply on Wednesday after reports that OPEC production increased by 120,000 barrels per day in December, despite cuts to production targets. The barrel of West Texas Intermediate lost more than 5% and stood near $73 on Wednesday. However, the poor behavior of crude oil had little impact on the price of the Canadian dollar.
The price of Prayed posted strong gains for the second day in a row on Wednesday and posted its highest daily close in nearly 7 months, slightly above $1,850. The XAU/SD is really quiet on Thursday amid the modest rebound seen in the US 10-year Treasury yield.
The Bitcoin it rose as high as $17,000 on Wednesday but struggled to break above that level. Now, BTC/USD is trading flat around $16,850. The ethereum It gained bullish momentum and hit its highest level in three weeks at $1,272 on Wednesday, before pulling back to the $1,250 zone on Thursday.
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.
