The dollar was hot one day and cold the other, with the yen also observing something similar in a sharp fall in trading yesterday. Despite the dollar’s slump, USD/JPY pushed up to above 132.00 as buyers stuck in there and kept a defense of the 130.00 handle. So far today, there are some mixed moves but overall changes are light compared to the action in the past two days.
I reckon we might have to wait until after tomorrow’s US non-farm payrolls for markets to sort out their feet and get settled in.
Equities are tentative after yesterday’s modest showing, with European stocks looking perky while Wall Street had to rely on a late rally to salvage gains before the end of the day. It seems like there is still some lingering tension for US stocks after the turn of the year.
Looking ahead today, there will be some data releases in Europe to move things along but none of which that should be too impactful. As such, markets will be left to their own devices in sorting out trading sentiment with start of the year flows still a factor to consider after the volatile moves so far this week.
0700 GMT – Germany November trade balance data
0830 GMT – Germany December construction PMI
0930 GMT – UK December final services, composite PMI
1000 GMT – Eurozone November PPI figures
1230 GMT – US December Challenger layoffs, job cuts
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.