<p style=““ class=“text-align-justify“>For large parts of 2022, the theme in markets was to buy the dollar, sell everything else. And as we got closer towards year-end and the increasing likelihood of a Fed pivot, it was the other way around as the tables turned.</p><p style=““ class=“text-align-justify“>But to kick start the new year, stocks and bonds are bid today but that is somehow translating to a higher dollar as flows win out instead of the prevailing narrative that we have been so accustomed to last year. Here’s a snapshot of broader markets:</p><ul><li>Eurostoxx +1.4%</li><li>Germany DAX +1.3%</li><li>France CAC 40 +1.2%</li><li>UK FTSE +2.0%</li><li>S&P 500 futures +0.9%</li><li>Nasdaq futures +0.9%</li><li>Dow futures +0.8%</li><li>10-year Treasury yields down 8.7 bps to 3.745%</li><li>10-year German bond yields down 8.2 bps to 2.357%</li><li>10-year Italy bond yields down 10.5 bps to 4.447%</li></ul><p>On any other day in the final two months of last year, this would’ve been a more risk on sort of day. But not today, as the dollar and yen are running rampant across the board with the greenback notably picking up a strong bid in European morning trade.</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-catches-a-bid-to-start-the-session-20230103/“ target=“_blank“ rel=“follow“>Dollar catches a bid to start the session</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-turns-positive-on-the-day-now-20230103/“ target=“_blank“ rel=“follow“>USD/JPY turns positive on the day now</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-under-pressure-of-cracking-lower-as-dollar-sees-strong-bid-on-the-day-20230103/“ target=“_blank“ rel=“follow“>GBP/USD under pressure of cracking lower as dollar sees strong bid on the day</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/audusd-stumbles-lower-as-dollar-takes-charge-to-start-the-new-year-20230103/“ target=“_blank“ rel=“follow“>AUD/USD stumbles lower as dollar takes charge to start the new year</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/nzdusd-down-to-fresh-five-week-low-as-dollar-stays-on-a-tear-today-20230103/“ target=“_blank“ rel=“follow“>NZD/USD down to fresh five-week low as dollar stays on a tear today</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/audjpy-on-track-to-revisit-key-support-level-to-start-the-new-year-20230103/“ target=“_blank“ rel=“follow“>AUD/JPY on track to revisit key support level to start the new year</a></li></ul>

This article was written by Justin Low at www.forexlive.com.