There seems to be a bit of pushing and pulling in markets at the moment, and I would say that something’s gotta give in due time. The dollar is mostly lower across the board, with it only gaining against the Japanese yen today. That comes as Treasury yields are pushing back higher on the session with 10-year yields now up 4.3 bps to near 3.95%.

Elsewhere, the dollar is down against the European currencies as noted here and also down just slightly against the commodity currencies. USD/CAD is down 0.3% to 1.3318 while AUD/USD is up 0.2% to 0.6740, though the latter has large option expiries at 0.6755 to contend with as well.

It is a bit of a mixed bag as equities are slightly higher but bond yields as well, then you couple that with the action in major currencies above. It seems like traders are trying to find some answers on the week but for the day itself, there are some conflicting convictions. I reckon it’s going to be all about where the data takes us in the closing stages this week it would seem.

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

While the UK economy arguably ended the year on a high, the Eurozone economy is still suffering a downturn even with the positive revisions to the French and German data earlier. But amid a steadier market mood today, the euro and pound are able to push a little higher against the dollar now.

EUR/USD is up 0.4% to 1.0960 while GBP/USD is also up 0.4% to 1.2710 on the day, keeping tabs with the gains in the commodity currencies. The greenback suffered a setback yesterday, with 10-year Treasury yields failing to hold a push at 4% and has since struggled to recapture the momentum from earlier this week.

After two days of traders seemingly correcting the moves in November and December, we might be in for a return to the norm today if risk trades can hold up. European stocks are up slightly by around 0.3% to 0.7% while S&P 500 futures are marginally higher, up 0.2% on the day currently.

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

Yesterday, the Nasdaq Composite extended the fall
with all the gains from the Fed pivot now basically erased. The economic data
didn’t help the market either with the inside data in the US ISM Manufacturing PMI painting
a weaker picture than the headline beat and the US Job Openings coming
in lower than expected with the hiring rate now below the pre-pandemic levels. There
are still key data to be released this week, but the new year is starting on a
negative note.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
dropped below the swing low around the 14770 level and the red 21 moving average. This
has opened the door for a bigger fall into the 14050 level. The sellers are
likely to keep piling in, especially if the data continues to disappoint, while
the buyers will need the price to rise back above the 14770 level to get back
some conviction.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the Nasdaq
Composite has been trading inside a rising channel with the lower bound of the
channel being a strong support zone
given that we had also the confluence with the
swing low and the 38.2% Fibonacci retracement level.
This support zone got breached with more bearish bets piling in to target the
14050 level.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the current price action and the support zone around the 14770 level. From
a risk management perspective, a pullback into the support now turned
resistance will offer a better risk to reward setup
with the sellers finding also the red 21 moving average for confluence.

Upcoming
Events

Today we will have another slate of US labour market
data with the release of the US ADP and Jobless Claims figures. Tomorrow, we
conclude the week with the NFP report and the ISM Services PMI.

This article was written by FL Contributors at www.forexlive.com.