The EUR is the strongest, while the USD is the weakest as the year gets underway

Technical Analysis

Author: Greg Michalowski | forex

The USD continues it's fall

The last week or so of 2017 saw the USD fall. The greenback was the weakest of the major currencies in 2017 and to start the New Year, it remains on the defensive (and the weakest).  The EUR is the strongest (from Friday's close).  

The New Year should bring more normal trading/liquidity. The ranges in the new day are showing some life with the EURUSD and USDJPY reaching the 22 day average range (red line in the lower chart).  The USD is near extreme levels vs the EURUSD, GBPUSD, USDJPY and USDCHF.  Not a bad start to the year.  

In other markets today:
  • Spot gold is trading up $9.78 or 0.75% at $1312.33.  It remains above the $1300 level.
  • WTI crude oil futures are trading down six cents or -0.10% at $60.36.   It remains above the important $60 barrier
  • US yields are starting the year higher:  two-year 1.8991%, up 1.6 basis points.  Five-year 2.281%, up 2.1 basis points.  10 year 2.4344% up 2.9 basis points.  Thirty-year 2.7746% up 3.5 basis points
  • US stock futures in premarket trading are higher.  Dow futures are up 66 points.  NASDAQ futures are up 23 points.  S&P futures are up 7.25 points.
  • In the European equity markets they continue their weakness seen at the end of 2017.  Germany's DAX is down -0.8%.  France's CAC is down -0.6%.  UK's FTSE is down -0.5%.  Spain's Ibex is bucking the trend up 0.2%.  Italy's FTSE MIB is down -0.4%
  • 10 year note sector in Europe are showing mostly higher yields.  Germany up two basis points.  France up 2.2 basis points.  UK up 6.8 basis points.  Spain up 4.2 basis points Italy up 5.7 basis points
The economic calendar remains light on the first trading day of the calendar year.  
  • At 8:30 AM ET/1430 GMT Canada's Markit manufacturing PMI for December will be released.  Last month they came in at 54.4
  • US Markit Manufacturing Final PMI will be released at 8:45 AM ET, 1445 GMT.  The estimate is 55.0 which is unchanged from the preliminary reading
  • Out of New Zealand the global daily trade auction results will be released at some point this morning.
  • On Friday we get the US Non-Farm Payroll, NFP is expected to rise by 180K.
Happy New Year to all and good fortune with your trading in 2018!