The first trading day of 2024 saw a sharp sell-off in stock markets, especially in the US, and gains for the US dollar.
➡️ As markets reopened yesterday after the Christmas and New Year holidays, stock markets and Treasuries sold off sharply, while the US dollar experienced its best day since March 2023. This is a strong counter-trend move seen in most markets, which is typical for early January trading. During the Asian session, the dollar stabilized, although major Asian indices like the HSI And the Nikkei 225 are both down on the day.
➡️ A prominent asset on the market right now, as 2024 begins, is Bitcoin , which is carrying out a bullish consolidation after reaching a new 20-month high price above the $45,000 round figure yesterday. This bullish breakout will attract the interest of traders, especially trend traders. This is believed to be partly driven by expectations that regulators will approve a new Blackrock Bitcoin spot ETF within the next few days.
➡️ In the Forex market, since the opening of Tokyo, the New Zealand dollar is the strongest major currency, while the Japanese yen is the weakest. It remains a valid long-term bullish trend for EUR/USD and a bearish trend for USD/JPY , although both saw strong countertrend movements yesterday.
➡️ In commodity markets, cocoa futures they stand out for being well rooted in a long-term uptrend and they are not too far from the highs.
➡️ There will be 3 impactful US data releases today:
- ISM Manufacturing PMI
- JOLTS Job Offers
- Minutes of the FOMC meeting
Credit by DailyForex.com