Market Drivers – US Session 02/01/2023

The US Dollar was starting the year higher, advancing against most of its major rival currencies but ended it unevenly across the FX board. The EUR was the weakest, as EUR/USD retreated from the 1.0700 area towards the current 1.0650 price zone, while the AUD was the strongest, with AUD/USD holding above the 0.6800 threshold.

GBP/USD and USD/JPY finished Monday unchanged at 1.2045 and 130.75, respectively, while USD/CAD edged higher and settled at around 1.3560.

Most Asian stock markets were closed, while some European ones were also inactive. The European benchmarks that actually operated on Monday posted modest gains. Wall Street remained closed.

There was no activity in bond markets, nor among commodities, with market players awaiting the next Asia opening for direction.

Chances skew towards a downbeat mood after Chinese data released over the weekend indicated a steeper economic contraction in December 2022.

Economic Data Ahead

The macroeconomic calendar will include some interesting releases this week, with EU and German inflation updates and the FOMC Meeting Minutes.

On Tuesday, Germany will publish the preliminary estimate of the December Consumer Price Index, foreseen up by 10.7% YoY. Next Wednesday, the US will release employment figures, while the December Nonfarm Payroll report is scheduled for Friday.

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