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European Forex news roundup: The dollar remains stable, as markets welcome the new year.

  • 03 January, 2022
  • 5:55 pm EET

European Forex news roundup: The dollar remains stable, as markets welcome the new year.

The latest Forex news from the European morning session on January 3, 2022.

Because the London markets are still closed, Europe experienced a quieter session today.

The dollar remained relatively stable during the session, gaining ground against the euro, pound, and Australian dollar. Meanwhile, the USD/CAD is retracing part of its Friday loss after testing critical support levels, as detailed here.

EUR/USD is somewhat lower, hovering around 1.1335-50, while USD/JPY has seen early gains fade, falling from 115.30 to 115.00-10. For the most part, USD/CAD held gains from Asia around 1.2670-80 levels.

Equities are resuming up where they left off in 2021, with a strong start to the year. European markets are up around 1%, while US futures are slowly rising, with S&P 500 futures up 0.6 % .

It’s a shaky start, but anticipate things to build up during the week as actual money flows resume, before the emphasis goes to the US non-farm payrolls report on Friday.

 

Eurozone December final manufacturing PMI 58.0 vs 58.0 prelim

The report’s good point is that supply limitations are reducing slightly, although they remain persistent. Firms took advantage of this by increasing stocks at the quickest rate recorded by the survey, while manufacturing production and overall conditions remain relatively unchanged from November levels.

Price pressures also eased slightly, although they remain elevated, near to the survey’s record highs. Markit observes:

“It’s been an incredibly difficult period for eurozone manufacturers this second half of 2021, but the latest survey data hasn’t ruined the festive cheer too much – we’re seeing some tentative, but very welcome signs that the supply chain crisis that has plagued production lines all across Europe is beginning to recede.” The Suppliers’ Delivery Times Index rose for the second month in a row to its best level since February, indicating a slower decline in vendor performance.

“As input costs climbed at the slowest rate since April, supply chain tensions were alleviated, which trickled through to prices.” Inflationary pressures are beginning to ease, but we’re still in hot water. As the Omicron form emerges in Europe, we are now facing a new round of economic turmoil. Supply chain disruptions caused by COVID-19 cannot be counted out, and so subsequent inflationary increases cannot be ruled out.”

 

Markets News :

  • USD leads, CAD lags on the day
  • European equities higher; S&P 500 futures up 0.6%
  • Gold down 0.4% to $1,821.86
  • WTI up 0.5% to $75.60
  • Bitcoin up 2.0% to $46,656

 

 

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