This is what you need to know to trade today monday january 9:
The American dollar is struggling to find demand at the start of the week, with the DXY Dollar Index falling to multi-month lows near 103.50 after losing more than 1% on Friday. Market sentiment remains relatively upbeat after the recovery in risk appetite seen before the weekend with US stock index futures up 0.3-0.5% early in the European morning. The data on investor confidence and the unemployment rate for november will appear on the European economic agenda. Later in the session, the change in consumer credit for November in the United States will be revealed.
The US Bureau of Labor Statistics reported Friday that NFP non-farm payrolls increased by 223,000 in December. This number beat expectations of 200,000 but failed to boost the US dollar. Details behind the jobs report revealed that annual wage inflation, as measured by average hourly earnings, eased to 4.6% from 4.8%, compared with analysts’ forecast of 5%. Later in the American session, the ISM announced that the services PMI fell to 49.6 points in December, compared to 56.5 in November. The employment index fell to 49.8 in the same period and the prices paid index fell to 67.6 from 70.
Following the release of this data, the 10-year US Treasury yield fell towards 3.5% and lost more than 4% on Friday. Wall Street’s three main indexes rose more than 2% and the dollar suffered heavy losses against its rivals. According to the CME Group’s FedWatch tool, markets currently price the probability of a 25 basis point Fed rate hike in February at 75%compared to 57% on Friday.
The EUR/USD it gained over 100 pips on Friday and continued to rise to 1.0700 early on Monday. Data from Germany revealed on Monday that industrial production grew 0.2% per month in November, after the contraction of 0.1% in October.
The GBP/USD It rallied strongly on Friday and ended up closing the week flat near 1.2100. With the dollar retreating in the early hours of the European session on Monday, the pair remains in positive territory around 1.2150.
The price of Prayed benefited from falling US Treasury yields and posted impressive gains ahead of the weekend. XAU/USD maintains its bullish momentum early Monday and It is now trading at its highest level since early Mayclose to $1,880.
Despite the selling pressure surrounding the US dollar, the USD/JPY remains relatively quiet below 132.00 earlier in the week as Japanese markets were closed for the Maturity Day bank holiday.
The Bitcoin managed to rally over the weekend and gained almost 3% weekly. BTC/USD is now trading at its highest level since mid-December, around $17,200. The ethereum it gained more than 2% on Sunday and maintains its bullish momentum into early Monday. At time of writing, ETH/USD is up 1.5% on the day at $1,310.
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.
