What you need to take care of on Wednesday, January 3:
The US Dollar was the overall winner on Tuesday, appreciating sharply against all its major rivals. Investors returned to the USD following signs of tepid global growth at the end of 2024. S&P Global released the December Manufacturing PMIs for several major economies, all of which indicated economic contraction persisted.
S&P Global EU index was reported at 44.4, slightly better than the previous 44.2. In the UK, manufacturing output resulted at 46.2, worsening from the previous 46.4 and missing expectations. The US PMI came in at 47.9, contracting from the previous 48.2, while the Canadian index contracted to 45.4. Tepid growth figures made market players rethink the aggressive betting on upcoming rate cuts among the most developed economies.
EUR/USD plunged to 1.0940, settling a handful of pips above the level. GBP/USD trades near 1.2600, while commodity-linked currencies are among the biggest losers, with AUD/USD hovering around 0.6760 and USD/CAD at around 1.3320.
Finally, the USD/JPY trades around 142.00, while Gold saw little action, ending the day with modest losses at around $2,060 a troy ounce.
Government bonds edged lower, pushing yields to their highest since mid-December. Wall Street turned south, and the three major indexes posted daily losses.
Wednesday will bring some relevant US figures, including the December ISM Manufacturing PMI, November JOLTS Job Openings and the Federal Open Market Committee (FOMC) Minutes. The latter could be relevant after Chairman Jerome Powell mentioned rate cuts after the latest Federal Reserve (Fed) monetary policy decision. There will not be data released through the Asian session.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.