Forex Signals Brief for Jan 3: Markets Begin the Year in Bull Mode

US Market Wrap

The year might have changed, but it appears the bulls on Wall Street are still out in full force.

The SPX pushed higher on the first official day of trade to start the year in the same way it finished. The NASDAQ also rallied in a similar fashion.

At the same time, we continue to see weakness in the Greenback, which is helping prop up the majors, as risk-on remains in full flight.

Today’s Agenda

We have some more key data out of Europe and the UK today which will impact the EUR/USD and GBP/USD.

Firstly, we get German employment data which is expected to show 2K new jobs to have been created, which is up from the prior month’s sharp fall. While the jobless rate should remain steady.

Then for the UK, we get construction PMI, before more data from Germany with their CPI print. 

The FOMC minutes have been a source of confusion as to their exact day and time of release, but we now expect them to be out later today.

Forex Signal Update

The FX Leaders Team didn’t find a winning position yesterday in light trade.

USD/JPY – Pending Signal

The USD/JPY has ticked under the 108.50 level as price remains bearish thanks to a soft USD. While Japanese traders are away, we will need to watch this level closely in today’s session.

Gold – Pending Signal

GOLD remains very bullish above the $1500 level and since breaking $1515, is not showing any signs of slowing just yet.

Cryptocurrency Update

Just as we suspected it might, BTC has dropped under the $7,000 level as the bears remain in control.

Price kept getting sold down at the $7,600 level which to me was a clear sign of what could come. That said, we have seen multiple tests of $7,000 and so far the buyers keep holding up price for now.

$6,500 is really the target level that we will be watching to see if price can push all that way lower. But the first thing will be whether price can hold under $7,000.