Overnight FX trading volumes were light due to London markets being closed for a holiday as are Japan, Australia, and China. The dollar was generally stronger as investors began the new trading year with concerns over the impact of surging Omicron case counts. Interest rates shot higher this morning unsettling traders and causing a move into safe haven assets like the dollar.
Economic Data this Week:
Tuesday: ISM Manufacturing for December, JOLTS Job Openings for November
Wednesday: FOMC minutes from December, ADP Employment Change in private payrolls
Thursday: Initial Jobless Claims for week ending Dec. 25. Factory Orders and ISM Services for December
Friday: Non-Farm Payrolls for December (e400K)
January 3, 2022
EUR/USD 1.1326 GBP/USD 1.3474 USD/CAD 1.2738 AUD/USD 0.7207 USD/JPY 115.27 USD/CNH 6.3715 USD/ILS 3.0974 USD/MXN 20.5626 USD/CHF 0.9167 USD/INR 74.2600 USD/BRL 5.6394 USD/SGD 1.3522 USD/DKK 6.5666 USD/SEK 9.0928 USD/NOK 8.8571
The dollar begins 2022 with buying interest from global investors after finishing 2021 roughly 7% higher. Light trading in financial markets today could lead to volatility as some market participants continue holidays. Interest rates are higher to begin the year attracting global investors to US dollar-denominated deposits and Treasuries.GBP
The UK markets are closed today for a holiday.EUR
The euro gave back much of the gains from last Friday and remains in the broad 1.12-1.14 trading range from December.CAD
The Canadian dollar followed the price of oil lower as US trading began. Omicron-related uncertainty led to weaker oil prices.ASIA/PACIFICChina, Japan, Australia, and New Zealand are closed today for holidays.
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