- As markets reopened yesterday following the Christmas and New Year holidays, stock markets and treasuries saw a strong selloff, while the US Dollar had its best day since March 2023. This is a strong counter trend move which was seen in most markets, which is typical for early January trading. During the Asian session, the Dollar steadied, although major Asian indices such as the HSI and the Nikkei 225 were both down on the day.
- A standout asset in the market right now as 2024 gets underway is Bitcoin which is making a bullish consolidation after reaching a new 20-month high price yesterday above the round number at $45,000. This bullish breakout will attract interest from traders, especially trend traders. It is seen as partly driven by the expectation that regulators will approve a new spot Bitcoin ETF from Blackrock within e next few days.
- In the Forex market, since the Tokyo open, the New Zealand Dollar is the strongest major currency, while the Japanese Yen is the weakest. There remains a valid long-term bullish trend in EUR/USD and a bearish one in USD/JPY, although both saw strong counter trend moves yesterday.
- In the commodities markets, Cocoa futures stand out as being well established within a long-term bullish trend and are not too far off their highs.
- There will be 3 high-impact US data releases today:
- ISM Manufacturing PMI
- JOLTS Job Openings
- FOMC Meeting Minutes
Forex Today: Stocks in New Year Selloff, US Dollar Gains
By Adam Lemon
Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
The first market day of 2024 saw a strong selloff in stock markets, especially in the USA, and gains for the US Dollar.