Market Drivers – US Session, January 3, 2024

On Tuesday, the US dollar emerged victorious overall, with a strong appreciation vs all of its main competitors. By the end of 2024, investors were back in the USD due to signals of slowing global growth. S&P Global published the Manufacturing PMIs for December for a number of significant economies, all of which showed continued economic deterioration.

S&P Global EU index was recorded as 44.4, indicating a small improvement over 44.2. Manufacturing output in the UK came in at 46.2, which was below estimates and worse than the previous 46.4. The Canadian index fell to 45.4, while the US PMI came in at 47.9, down from the previous 48.2. The market participants reconsidered their bullish bets on the most developed economies’ impending rate decreases due to tepid growth numbers.


The EUR/USD pair fell to 1.0940, ultimately closing a few points above the level. Commodity-linked currencies are among the largest declines, with AUD/USD trading about 0.6760 and USD/CAD at roughly 1.3320. GBP/USD is trading close to 1.2600.

At the end of the day, Gold experienced minimal movement and ended the day with little losses at about $2,060 a troy ounce. Meanwhile, the USD/JPY trades at 142.00.

As government bonds continued to decline, rates rose to levels not seen since mid-December. When Wall Street declined, the three main indexes showed daily losses.

Wednesday will bring some relevant US data, including the December ISM Manufacturing PMI, November JOLTS Job Openings and the Federal Open Market Committee (FOMC) Minutes. The latter could be relevant after Chairman Jerome Powell mentioned rate cuts after the latest US Fed monetary policy decision. There will not be data released through the Asian session.

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