This is what you need to know to trade today Wednesday, January 5:
The American dollar He gathered strength against his rivals during the first half of Tuesday, but lost his momentum during the American session. Risk-off sentiment sent US Treasury yields down and the DXY dollar index moved away from the two-week high it set earlier in the day. Later in the day, the US Private Sector Jobs Report Released by ADP and FOMC Monetary Policy Meeting Minutes December will be closely followed by market participants. In addition, IHS Markit will also publish final revisions of the Composite and Services PMIs for the Eurozone, Germany and the United States.
Reflecting sour market sentiment, the Shanghai Composite Index is losing 1% and US equity futures are down 0.3-0.55%. Current concerns around Chinese real estate giant Evergrande, inflation fears and the rapid spread of the Omicron variant force risk appetite to remain limited.
Meanwhile, data from the United States showed on Tuesday that business activity in the manufacturing sector expanded at a softer pace than expected in December. On a positive note, the prices paid component of the ISM manufacturing PMI fell sharply to 68.2 from the 82.4 points seen in November.
The EUR/USD it closed for the second day in a row in negative territory on Tuesday, but appears to have settled around 1.1300 at the start of the European session.
The GBP/USD It fell below 1.3500 but managed to maintain its bullish momentum. British Prime Minister Boris Johnson said they have a chance to “get out of this Omicron wave” without imposing lockdowns, which helped the pound find demand.
The USD/JPY extended its rally to a new five-year high above 116.00 on Tuesday. With the benchmark 10-year US Treasury yield lower early Wednesday, the pair is trading negative near 116.00.
The inverse correlation of oro with US Treasury yields remaining intact mid-week. The XAU / USD tested $ 1,800 on Tuesday, but ended up closing the day in positive territory above $ 1,810.
The Bitcoin it continues to trade near the lower limit of its month-old range at $ 46,000. The Ethereum it closed little changed on Tuesday and started climbing toward $ 4,000 early Wednesday morning.
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