Here is everything you need to know about Forex.
In Forex Market first trading day of 2024, the US Dollar (USD) gained bullish momentum and beat its competitors as the market sentiment worsened. The USD Index appears to have stabilized over 102.00 early on Wednesday, following a nearly 1% increase on Tuesday. The US economic docket will include data on December ISM Manufacturing PMI and November JOLTS Job Openings. The Federal Reserve (Fed) will make available the minutes of the December policy meeting later in the American session.
The USD gained strength on Tuesday as trading conditions returned to normal, and the yield on the benchmark 10-year US Treasury note increased toward 4%. Conversely, Wall Street’s primary The Nasdaq Composite Index dropped more than 1.5%, and indexes began trading lower than expected. Early on Wednesday, US stock index futures are trading slightly lower as the 10-year US yield remains stable at about 3.95%.
Forex Market movement in pairs.
After falling below 1.1000, the EURUSD experienced significant selling pressure and on Tuesday hit 1.0938, its lowest level in almost two weeks. The pair remains in a consolidation phase on Wednesday morning in Europe, just over 1.0950. December’s unemployment rate data will be made available by Germany’s Destatis.
On Tuesday, GBPUSD dropped more over 100 pip and approached 1.2600 before making a little comeback. At about 1.2650, the pair was last observed trading slightly higher on the day.
Tuesday saw a surge in USDJPY due to higher US rates. and widespread USD strength. During Asian trading hours, the pair lost its upward momentum and began to drift horizontally close around 142.00.
Tuesday saw a strong increase in USDCAD, which stabilized around 1.3300 early on Wednesday. Falling Crude Oil prices, which put pressure on the Canadian Dollar, which is sensitive to commodities, combined with the USD’s positive performance to enable the pair go higher.
Gold shifted course in the American session after reaching toward $2,080 on Tuesday, and it ended the day essentially flat close to $2,060. XAUUSD remains stable and moves in a narrow range just above $2,060 in the morning hours of Europe.
