Dow Jones, Standard & Poor’s 500, USD, Gold, Pound Sterling, US CPI

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Global market sentiment has improved to start the first week of 2023. Wall Streetand Dow Jones Standard & Poor’s 500 And Nasdaq The 100 rose by 1.23%, 1.19%, and 0.87%, respectively. across the Atlantic, the FTSE 100 index And Dax 40 profit of 2.49% and 4.93%, respectively. Meanwhile, in the Asia-Pacific region, Hang Seng index and ASX 200 It increased by 6.33% and 1.28%, respectively.

Moving on to currencies, it was a mixed bag for U.S. dollar. the euro And Japanese Yen It was a poor performer, though Australian dollars And British pound excelled. You would have to look at the Treasury yields to see where the real story was. The 10-year interest rate fell by the most since February 2022. Lower bond yields helped gold It rose 2.38%, the highest level since late November.

Traders focused on the slowdown in average hourly earnings and the failure of the US ISM services data, which moderated the Fed’s hawkish policy bets in the long run. Meanwhile, improving confidence in the Chinese economy helped push the yuan higher as the Hang Seng Index closed at its highest level since July 2021. Warm weather in Europe helped push Crude oil minimum.

In the future, all eyes will be on the closely watched United States inflation Report due Thursday. Average hourly earnings are likely to set expectations for a further slowdown in CPI. Meanwhile, GBP traders await the latest UK news gross domestic product Numbers. What else is in store for the markets next week?

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How did the markets perform – week 1/02

How did the markets perform - week 1/02

Basic expectations:

S&P 500, FTSE 100, Hang Seng forecasts of different levels of delirium

Depending on which benchmark “risk” asset you’re referring to, it would seem that the fundamental outlook for global markets was encouraging – borderline exceptional. The truth is higher rates and a potential recession and other issues follow. So what can be learned from the S&P 500’s hold, the FTSE 100’s near records and the Hang Seng rally?

GBP Fundamental Outlook: The festive cheer ends and the UK PM seeks an end to the strikes

Sterling remains weak as companies issue a trading warning for 2023. Trade unions continue to strike and government plans to cut energy exemption for companies continue.

Australian Dollar Forecast: Volatility Begins in 2023

The Australian dollar has had a bumpy ride in the new year with Chinese policy adjustments and US dollar volatility starting to ease. Will Australian dollar / US dollar find her own way?

Euro 6-Week Gaining Streak Ends, Will US CPI Easing Revive EUR/USD?

The Euro’s 6-week winning streak is over. But disappointing US earnings and ISM services data sets a bad tone for the next key CPI data. EUR/USD can rise.

Gold Core Price Outlook: XAU/USD is poised for the next higher line

The precious metal remains ahead of US interest rate expectations and with yields beginning to reverse lower from recent highs, gold may soon attempt a new multi-month high.

Technical outlook:

USD Technical Forecast: EUR/USD, GBP/USD, USD/CAD, USD/JPY

The US dollar formed a bullish breakout from the 3-week range but pulled back strongly after a disappointing PMI release, highlighting the growing influence from the Fed. raise rate strategy.

Gold (XAU/USD) Rally to the upside – $1,850 support holding previous resistance

Gold benefited from weaker weakness despite a slight pullback against the US nfp‘s. XAU/American dollar Above $1850, the next resistance barrier is starting to form.

JPY Technical Outlook: A mixed bag of JPY technicals

Technical patterns are giving mixed signals; Will the Bank of Japan’s continued support for the yen encourage the yen bulls to return?

– Text of the article by Daniel Dubrovsky, Chief Strategist at

— Individual articles written by members of the DailyFX team

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