This Monday marks the beginning of an eventful week, and today’s trading activity lays the foundation for the week ahead.
As we step into the new year, today’s market session sets the stage for a week filled with key economic data and political developments.
KEY INDICATORS
Focus on US economic data
The spotlight today is on the upcoming release of the ISM Manufacturing PMI for December.
This report will provide insights into the health of the manufacturing sector as investors assess how businesses are navigating inflation and demand challenges.
Global market sentiment
Asia: Asian markets closed mixed overnight, with continued concerns over China’s economic recovery despite government stimulus efforts.
Europe: European stocks opened cautiously as investors monitor inflation updates and central bank commentary.
US futures: US stock futures point to a steady open, with traders positioning ahead of a busy week of data releases and political events.
Oil prices and energy markets
Crude oil prices are in focus today, trading near recent highs due to ongoing supply concerns and robust demand.
The energy sector could see notable activity as traders react to these developments.
MARKET MOVERS
EUR/USD
Possible long preference Long positions above 1.04135 with targets at 1.04287 & 1.04498 in extension. Alternative scenario Below 1.03352 look for further downside with 1.03083 & 1.02970 as targets. EUR/USD gathers recovery momentum and trades above 1.03400 in the European session after the data from Germany and the Eurozone.
EUR/USD climbs above 1.0350 ahead of German inflation data
After closing in positive territory on Friday, EUR/USD continues to edge higher and trades above 1.0300 on Monday morning in Europe.
The improving risk mood heading into the weekend made it difficult for the US dollar (USD) to find demand and helped EUR/USD erase a portion of its weekly losses on Friday.
Early on Monday, US stock index futures are trading marginally higher, keeping the USD under pressure against its rivals.
Inflation in Germany, as measured by the annual change in the Consumer Price Index (CPI), is forecast to rise to 2.4% in December from 2.2% in November.
On Tuesday, Eurozone inflation data and the ISM Services PMI report from the US could influence EUR/USD’s movements.
XAU/USD
Possible short preference Short positions below 2632.39 with targets at 2625.83 & 2611.74 in extension. Alternative scenario Above 2652.70 look for further upside with 2658.27 & 2664.50 as targets. The break below 2652.70 is a negative signal that has opened a path to 2611.74
TODAY’S NEWS HEADLINES
Europe stocks higher as autos jump 5% on Trump tariff report; chip stocks also climb
European markets were higher on Monday, driven by technology and automotive stocks, as investors assessed a media report suggesting US President-elect Donald Trump’s tariff plan may not be as extreme as feared.
The regional Stoxx 600 index was up 0.7% by midday UK time, with the autos sector climbing 4.7%.
The Stoxx 600 had a mixed performance last week, although it ended 0.2% higher amid a rocky start to 2025 for global stocks.
Gold holds steady as rising yields counter softer dollar
Gold prices held steady on Monday as rising US Treasury yields counteracted the effect of a weaker dollar, while investors awaited economic data for clues on the Federal Reserve’s interest rate trajectory after it flagged a slower pace of cuts this year.
Spot gold was little changed at USD 2,641.19 per ounce.
US gold futures were steady at USD 2,655.00.
US President-elect Donald Trump takes office on 20 January, and his proposed tariffs and protectionist policies are expected to drive inflation.
Oil prices hold at three-month high on stronger demand
Oil prices steadied at their highest since mid-October as colder weather spurred buying, with further support from expectations of tighter sanctions on Iranian and Russian oil exports.
Brent crude futures gained 22 cents, or 0.3%, to USD 76.73 a barrel by 1133 GMT, their highest since 14 October.
US West Texas Intermediate crude was up 23 cents, or 0.3%, at USD 74.19, its highest since 11 October.
